CVS had been struggling financially. Under the deal, Manitex will rent and operate the business initially, while it goes through the ‘concordato preventivo’ insolvency process. It will then have an exclusive option to acquire the business. This could take two years, but Manitex anticipates it to take less time.

The deal has the potential to transform both businesses. Rooke said, “As a business, Manitex operates in niche markets, with niche products. Historically, our manufacturing and sales have been North American-centric, but over the last couple of years we’ve targeted international markets. We’ve been successful, particularly in the Middle East. At the end of 2009, our non North American sales were 10% of the business.

“CVS fits into that conjunction of niche strategy and international aspirations. It is a potentially transformative deal for us. It is a substantial business. Its European distribution and manufacturing complements our North American business: CVS has not had a strong presence in North America, and Manitex does not have a strong presence in Europe. This deal will allow us to produce a global product, for a global market, while still targeting niche sectors.

“CVS’s markets—container stackers—have a higher growth profile than others we’re in. Container handling is a strong market, and globalisation will continue to support growth.

CVS and Manitex are good strong brands, it is a very good fit. This deal will allow us to explore synergistic opportunities, to export our product to Europe and bring theirs to North America.

The expertise in the CVS business could be leveraged to help with EU sales of Manitex’s traditional products. We’re looking at business opportunities on both sides of the pond.

The Italian courts have approved the rental arrangement, and we will have an exclusive option to buy the business. We’re working very hard at the moment to get customer support in and get the business up and running from troubled times. Its got a strong backlog that we will take over, we’ll be supporting its customers, and hoping they continue to demand CVS products.”