Terex Acquires Compact Track Loader Maker ASV

Terex Corp. has made a deal that will add track loaders to its compact equipment line. The manufacturer agreed to acquire A.S.V. for $488 million. 

Headquartered in Grand Rapids, Minn., ASV is a manufacturer of compact rubber track loaders and related accessories, undercarriages and traction products. The transaction is valued at $18 per share of ASV common stock, and is subject to the valid tender of a majority of ASV’s fully diluted common shares, regulatory approvals and other customary conditions. Terex expects the transaction to close by the end of the first quarter of 2008.

“ASV is a leader in compact track loader technology and with the global reach of Terex, we see tremendous opportunity for expanding ASV product sales,” says Ronald M. DeFeo, Terex chairman and CEO. “From a financial perspective, we expect that ASV will add approximately $220-250 million in sales on a 2008 full-year basis and we are confident that this acquisition will enhance future earnings growth potential for Terex.”

In addition, compact track loaders offer increased traction and greater stability while causing less ground or turf damage. ASV compact track loaders will join an existing Terex compact equipment range of backhoe-loaders, mini excavators, compact wheel loaders, site dumpers, compaction rollers, light towers, generators and telehandlers.

“The timetable for meeting ASV’s strategic priorities is accelerated considerably by the merger, which is a big plus for employees, dealers and the communities in which we do business," says Richard A. Benson, Chairman and CEO of ASV. "Caterpillar, a large ASV customer and owner of 23.5 percent of ASV shares, has indicated its support for the merger.”