A multi-million dollar deal sees machinery giant Terex make a render offer to purchase all of the outstanding shares of ASV, Inc., This follows on from an agreement made in January, in which Terex took over the smaller company in a transaction worth approximately US $488 million.
The Board of Directors of ASV, Inc. has recommended that shareholders accept the offer and tender their shares, for which Terex will pay US $18 each. The deal will end involvement in the company by Caterpillar Inc, who currently own a quarter of the company.
Ronald M. DeFeo, Terex Chairman and Chief Executive Officer said “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,” Richard A. Benson, Chairman and CEO of ASV remarked “This combination with Terex is a perfect fit for ASV,” adding “We gain access to the resources and know-how of a much larger company with a very impressive global footprint.
ASV, Inc. designs, manufactures and sells rubber track machines, including the Scout utility truck. Its purpose-built chassis and patented rubber track undercarriages are able to traverse nearly any terrain with minimal damage to the ground, making them effective in markets such as construction, landscaping, forestry and agriculture.
Terex Corporation is a diversified global manufacturer with 2006 net sales of $7.6 billion. The company manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining, and utility industries.
In line with Terex’s unified strategy, in time all ASV branding will be phased out, though the plant, production and product range will continue.