WEST BEND, Wis. - Gehl Co., a manufacturer of construction and agricultural equipment, has announced its board of directors will explore a full range of strategic alternatives, including acquisitions, strategic alliances, divestitures, a leveraged buyout, a recapitalization and the potential sale of the company.
"Given current macroeconomic conditions and the changing markets in which Gehl competes, we believe it is appropriate for the board to undertake a thorough review of the full range of strategic alternatives to determine the best course of action to maximize shareholder value," said William Gehl, chairman and chief executive. "Nothing is off the table."
The company, which lawn and landscape contractors may know from its line of skid-steer loaders and related landscape construction equipment, has received a takeover bid from private equity group Newcastle Partners L.P. and CIC Equity Partners Ltd. The group previously announced an $18-a-share takeover bid for Gehl, and it will now be invited to participate in the process on the same terms as all other interested parties.
"Newcastle and CIC will have an equal opportunity to participate in this process if they have a genuine interest in the company," said Gehl. "While we have serious concerns about their motives, as well as their willingness to act on their proposal, we are committed to creating a level playing field for all interested parties."
Gehl has hired investment-banking firm Robert W. Baird & Co. to assist in a review of its options. The company said the review is expected to last two to three months.
Gehl’s first quarter 2001 results announced May 3 show a net income of $1.0 million - a loss of almost 76 percent from net income of $4.1 million for the same period last year - and net sales of $63.7 million - a loss of about 12 percent from the $72.0 million in sales for the first quarter of 2000. Despite the first quarter losses, Gehl expects net sales for the full year 2001 to increase approximately 5 to 8 percent over 2000 levels.
For more information about the company visit www.gehl.com.