Manitex International Acquires Badger Equipment Company for $3 MillionWednesday, July 15, 2009
BRIDGEVIEW, IL — Manitex International, Inc. (Nasdaq: MNTX), a leading provider of engineered lifting solutions including boom truck cranes, rough terrain forklifts and special mission oriented vehicles, today announced that it has acquired Badger Equipment Company, a Winona, Minnesota-based manufacturer of specialized rough terrain cranes and material handling products. Terms of the acquisition included $250,000 in Manitex common stock and a $2.75 million five-year note bearing interest at six percent, for an aggregate purchase price of $3 million. Badger, which was acquired from Avis Industrial, a privately held company, had revenues of approximately $10 million, EBITDA of approximately $500,000, and positive net income in 2008.
Earlier this year, Badger Equipment announced plans to introduce a new line of specialized high quality rough terrain cranes, including a 30-ton model to its national dealer-base, with expected shipments to begin in the second half of 2009. This will be an excellent addition to Manitex’s product line, primarily serving the needs of the construction, municipality, and railroad industries, Manitex anticipates that the launch will remain on schedule, with initial shipments expected this current quarter.
David J. Langevin, Chairman and CEO of Manitex International commented, “We are excited to add another niche product line to the Manitex family. The acquisition of Badger’s specialized product lines will expand our market opportunities, through offering new product lines to our current dealers, and expanding our dealership network. We are particularly excited about the opportunity to introduce the new 30-ton rough-terrain crane, which we will begin to ship against orders in-hand in this current quarter. We anticipate moderate revenue and cash flow contributions in the second half of this year from Badger, with more substantial impact occurring in following years, primarily driven by the strength of this new product’s launch.”
Badger Equipment commenced operations in 1945 and has manufactured and sold more than 10,000 units since its inception. Its specialized earthmoving, railroad, and material handling equipment, parts, and other products, have been marketed under the Badger, Little Giant, Burro-CFT, Cullen FriestedtT, Western CullenT, and BurroT brand names. The Cullen-Friestedt’s branded equipment dates back to 1907.