ASV, Yanmar reach definitive merger agreement

July 1, 2019 -  By
ASV's full line of compact track loaders. (Photo: ASV Holdings)

ASV’s full line of compact track loaders. (Photo: ASV Holdings)

ASV Holdings has entered into a definitive merger agreement with an affiliate of Yanmar Holdings (Yanmar).

“We are excited to announce this value-maximizing transaction with Yanmar,” said Andrew Rooke, chairman and CEO of ASV. “Yanmar is a strong strategic buyer for ASV. Yanmar shares our vision to provide the highest-quality products, values the long legacy of ASV and is committed to supporting its employees and distribution partners. The ASV product is complimentary to the Yanmar portfolio of compact equipment creating a comprehensive equipment solution for current and future customers. Yanmar Compact Equipment will gain its only manufacturing facility in North America, here in Grand Rapids, Minn., and will contribute its considerable global presence and financial strength, making way for continued product development and innovation within the track loader and compact construction equipment category for years to come.”

Under the terms of the agreement, which have been approved by both the ASV and Yanmar boards of directors, ASV stockholders will receive $7.05 in cash for each outstanding share of ASV common stock, for a total value of $70.7 million. The ASV board of directors unanimously approved the agreement with Yanmar and recommends that ASV stockholders vote in favor of the transaction.

The combination of ASV’s compact track loaders and skid-steer loaders with the compact equipment portfolio of Osaka, Japan-based Yanmar creates a comprehensive and global provider of compact equipment with virtually no overlap in distribution networks, according to ASV. The ASV employee base, its manufacturing and distribution facility, international distribution network and supply chain creates a strong platform for North American expansion and will be a key part of Yanmar’s long-term international growth plans, according to the company.

The transaction is subject to approval by ASV stockholders and other customary closing conditions and is expected to close in the third quarter of 2019. In conjunction with the merger agreement, a subsidiary of Terex Corp., which owns 34 percent of the outstanding shares of ASV, has entered into a stockholder voting agreement in support of the merger.

“We believe that the ASV acquisition 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 compact track loader/skid-steer loader 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.”

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