Manitex has acquired Badger for USD3m, including USD$250,000 of Manitex common stock and a USD2.75m five-year note bearing interest at 6%, from Avis Industrial. Badger had revenues of USD10m and EBITDA of USD500,000 in 2008.
Earlier this year, Badger announced it was introducing a new line of rough terrain cranes, including a 30 USt model. Initial shipments were due to begin in the second half of 2009.
Following the acquisition, Manitex said it planned to stick to this schedule and that the rough terrain cranes will be an “excellent addition to Manitex’s product line, primarily serving the needs of the construction, municipality and railroad industries”.
“We are excited to add another niche product line to the Manitex family,” said chairman and CEO David Langevin.
“The acquisition of Badger’s specialised 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 USt 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.”
