21.07.2014

Manitex acquires PM

US based boom truck, crane and port handling equipment manufacturer Manitex has acquired the PM Group, the owner of PM loader cranes and Oil & Steel work platforms. The agreement is subject to the Italian court approval of a debt restructuring plan, which is currently pending.

The deal is said to be worth $107 million - comprising $24 million in cash provided by a new Manitex term loan with its current bankers, $15 million from issuing new shares to be distributed largely to PM’s bankers and $68 million in assumed debt and liabilities which includes working capital facilities for PM.

PM’s 12 month revenues through June 2014 were $106 million with an operating margin of nine percent - similar to that of Manitex. The acquisition is expected to close in the fourth quarter of 2014.

Between them PM loader cranes and Oil & Steel platforms have around 47,500 square metres of manufacturing space spread over two locations in San Cesario/Modena, and Arad in Romania with 578 employees. The two companies also have an extensive distribution network and have forecast revenues of €133 million for 2014 - 83 percent of which will be for export, mainly outside of Europe.

Manitex now has extensive business interests in Italy, having recently added Valla pick & carry cranes to its CVS-Ferrari port handling operations acquired in 2011.

The third company within the PM group, scaffold company Pilosio has been acquired by Polo Holding.

Manitex chief executive David Langevin, 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 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."