United States based the manufacturer of boom truck crane as well as port handling equipment The Manitex has taken control over PM group which owns the loader crane as well as Oil and Steel work foundations. The contract is subjected to the pending approval of court of Italy in relation to debt of a plan of reconstruction.
The worth of deal is believed to be $ 107 million including $ 24 million in the form of cash given by a newer Manitex term loan with present bankers and fifteen million dollars for the issue of newer share for being distributed on a large scale to bankers of PM and $ 68 million in perceived loan that has the inclusion of working capital related advantages for the PM.
The revenue of PM for twelve months through the month of June 2014 was $ 106 million along with operating margin 9 % that is very much identical to Manitex. In the 4th quarter of this year the closing of acquisition will take place.
Among these PM loader crane as well as Oil and Steel mediums possess 47500 m2 of production space that is distributed in two destinations in Cesario or Modena. Also, both companies possess a broad scale network of distribution and revenues of €133 million for the year 2014 have been forecasted.
In Italy presently Manitex has broad scale business interests. 3rd company in PM group has been taken over by the Polo Holding.
According to David Langevin who is the Chief executive of Manitex
“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 Leveraged Buy Out refinancing. 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 knuckle boom cranes, each with unique benefits, functionality, and niche market applications.”
“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.”