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Manitex International Buys Italian Manufacturer PM-Group | Construction News

Manitex International Buys Italian Manufacturer PM-Group | Construction News
Manitex International Buys Italian Manufacturer PM-Group | Construction News

Manitex International Inc., Bridgeview, Ill., (Manitex), a leading international provider of cranes and specialized material- and container-handling equipment, has reached an agreement to acquire PM Group S.p.A. (PM), San Cesario sul Panaro, Modena, Italy.

The agreement is subject to pending Italian court approval of a debt restructuring plan. Manitex expects the transaction to close during the fourth quarter of this year.

Consideration of $107 million in aggregate is to be paid as follows:
• $24 million in cash provided by a new Manitex term loan with current Manitex bankers;
• $15 million in new equity issuance (approximately 1 million Manitex shares) distributed primarily to current PM banks;
• $68 million in assumed debt and liabilities, which includes working capital facilities for PM.

Trailing 12-month (TTM) revenue for PM through June 2014 was approximately $106 million, with EBITDA margins consistent with those of Manitex, about 9% of sales.

The acquisition is expected to close in the fourth quarter of 2014, upon Italian court approval, and management expects this to be immediately accretive to Manitex International's net earnings in 2014.

PM-Group S.p.A., is a leading Italian manufacturer of truck-mounted hydraulic knuckleboom cranes with a 50-year history of technology and innovation, and a product range spanning more than 50 models.

Its largest subsidiary, Oil & Steel (O&S) manufactures truck- and track-mounted aerial platforms with a diverse product line and an international client base. Combined, O&S and PM add nearly 510,000 sq. ft. of assembly and manufacturing space, spread between two locations in San Cesario S/P, Modena, and in Arad, Romania. They sell to a broad dealer network, worldwide.

David Langevin, chairman and CEO of Manitex, said, “In PM-Group we have again found an exceptional opportunity to add new branded product lines, enhance our earnings power, and create value for our shareholders. PM is a substantial company that has performed very well despite a depressed European economy and a very heavy debt load incurred from its 2008 LBO refinancing."

Langevin added, "With the restructuring of its debt, which includes a reduction of more than $65 million, and evidence of the beginnings of a European recovery, we believe that this is a very attractive acquisition for us from a financial standpoint. This acquisition also expands our product portfolio nicely, enabling us to offer our dealers both straight-mast and knuckleboom cranes, each with unique benefits, functionality, and niche market applications.”

Langevin continued, “The combination of Manitex International and PM-Group results in a company with annual pro forma revenues in excess of $350 million and EBITDA margins that are consistent with our historical EBITDA margins. PM has excellent management, global distribution with particular strength in South America, Europe, and Africa and a product portfolio that we can introduce to Manitex’s strong North America distribution network which we believe will allow for further growth in sales and EBITDA in 2015 and beyond.”


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