Company Press Release
WEST BEND, Wis.--(BUSINESS WIRE)--Sept. 15, 1997--Gehl Company (NASDAQ:GEHL) announced today that it has signed a definitive agreement to acquire Mustang Manufacturing Company Inc., a manufacturer of skid loaders.
The agreement specifies a purchase price of $28 million and requires approval by the shareholders of Brunel Holdings, plc, the parent company of Mustang. The transaction is currently expected to close in early October.
William D. Gehl, chairman, president and CEO of Gehl Company commented, ``Gehl's goal is to be a major competitor in the light construction equipment market. The acquisition of Mustang gives Gehl an even stronger presence in one of the fastest growing segments of the construction equipment industry.'' U.S. sales of skid loaders increased from 22,000 units in 1991 to over 42,000 units in 1996.
The Mustang skid loader product will continue to be marketed under its well recognized brand name through its established distribution with manufacturing operations continuing at the Mustang facility in Owatonna, Minnesota where approximately 290 people are currently employed.
``The Mustang acquisition represents an excellent opportunity for Gehl to further expand its established expertise in a market that provides above average growth potential,'' Gehl continued. ``Based upon our evaluation of this potential, we currently expect that the acquisition will be accretive to EPS in the Company's fiscal year ending December 31, 1998.'' Mustang had total sales of $57 million in its latest fiscal year ended June 30, 1997.
Gehl Company is a leading manufacturer of skid loaders, rough terrain telescopic forklifts, asphalt pavers and farm machinery. Founded in 1859, the company is headquartered in West Bend, Wis., with manufacturing facilities in West Bend, Wis., Madison and Yankton, S.D., and Lebanon, Pa.
The statements which are not historical facts contained in this release are forward looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Gehl management cautions that these forward looking statements are based on the current understanding of the Mustang Manufacturing Company, Inc. business, and are highly dependent upon a variety of factors which could cause actual results to differ materially from results described
in the forward looking statements. These factors include, without limitation, general economic conditions, market conditions in relevant markets, market acceptance of exiting and new products and the ability of Gehl to successfully integrate the Mustang operation. |
