Yanmar Holdings has announced it will enter into a definitive agreement to acquire the Minnesota-based ASV Holdings Inc.
The acquisition, once finalized, will complete the Yanmar’s range of compact equipment products and contribute to Yanmar’s prospects for growth in North America and globally.
The transaction is expected to close in the third quarter of 2019, and Yanmar will acquire 100 per cent of ASV’s outstanding shares of common stock for $70.70 million, or $7.05 per share.
Yanmar plans to acquire ASV through the mechanism of a statutory merger. The transaction is subject to approval by ASV stockholders and other customary closing conditions
“We believe that the Yanmar Group’s acquisition of ASV will significantly bolster Yanmar’s compact equipment offerings in the loader segment, a product range vital for success in the all-important North American market.” Said Giuliano Parodi, executive officer of Yanmar Holdings.
“With its highly-skilled workforce and quality CTL/SSL lineup, ASV is a great fit for both Yanmar’s focus on quality, and our growth and expansion plans in the North American and global markets as it will create a comprehensive and global provider of compact equipment with virtually no overlap in distribution networks.”
ASV, a manufacturer of compact track loaders and skid steers, has an independent dealer network throughout North America, Australia and New Zealand. The company also sells OEM equipment and aftermarket parts. ASV owns and operates a 238,000 square-foot production facility in Grand Rapids, Minnesota.
“I have no doubt that our design, manufacturing and distribution expertise will find a welcome home in the Yanmar Group as we share a common vision to provide the highest-quality products,” said Andrew Rooke, chairman and CEO of ASV.
“ASV’s merger with Yanmar will ensure a vibrant future providing quality machinery for our customers and will provide a great opportunity for ASV employees to join a growing global company.”
ASV (All Season Vehicles) was founded in 1983 by Edgar Hetteen and Gary Lemke when they set out to develop a pick-up-sized rubber-tracked vehicle called the Track Truck. Both Hetteen and Lemke were forerunners of the early snowmobile industry.
Their creation, the Track Truck, featured ground pressure equal to less than a human on foot.
In 2008, ASV was acquired by Terex, and most recently, Manitex International acquired 51 per cent of the company. Terex currently owns 34 per cent of the outstanding shares of ASV, and has entered into a stockholder voting agreement in support of the merger.
The history of Yanmar
With beginnings in Osaka, Japan, in 1912, Yanmar was the first to succeed in making a compact diesel engine of a practical size in 1933.
Then, with industrial diesel engines as the cornerstone of its enterprise, Yanmar has continued to expand its product range, services, and expertise to deliver total solutions as an industrial equipment manufacturer.
As a provider of small and large engines, agricultural machinery and facilities, construction equipment, energy systems, marine equipment, machine tools, and components, Yanmar’s global business operations span seven domains.