Oshkosh Truck Corp. of Oshkosh, Wis., manufacturer of specialty trucks and truck bodies, recently announced the signing of a definitive agreement to acquire Iowa Mold Tooling (IMT) Co. Inc. of Garner, Iowa, a leader in field service vehicles and truck-mounted cranes, through a merger. The all-cash deal is valued at $131 million, and the transaction is expected to be complete by Sep. 30.
The acquisition is the second announced in fiscal year 2006 to support Oshkosh Truck's diversification strategy in the commercial specialty truck industry. It will provide entry into two adjacent market spaces, significantly strengthen Oshkosh's North American distribution channel and provide new technology integration opportunities for other Oshkosh businesses.
"IMT has built leadership positions in terms of market share, technology, distribution and brand recognition within the service vehicle and truck-mounted crane markets. The company provides an opportunity for further expansion within the construction, mining and tire service markets," said Robert Bohn, Oshkosh chairman, president and chief executive officer. "IMT is a bolt-on acquisition aligned with our long-held acquisition strategy and allows us to expand the products and services offered to the types of markets we understand very well."
The opportunity to increase our product and service offering to construction customers and to enter new specialty markets with industry-leading products was an appealing aspect of this acquisition," Bohn added.
IMT is a leading North American manufacturer of field service vehicles, which are marketed to major construction equipment dealers, major construction companies and mining operations. Its full line of service vehicles includes general mechanics trucks, tire service trucks and lubrication trucks. All are used to perform on-site service, maintenance or repair operations at locations such as construction sites, quarries and mines.
"This is a great opportunity all-around for IMT," said Steve Fairbanks, president of IMT. "Oshkosh's acquisition strategy states that they acquire market leaders, and we are honored that we are seen in that light by a company as prestigious as Oshkosh. We look forward to learning from and sharing best practices with the portfolio of market-leading Oshkosh companies."