ASV Inc., a Grand Rapids-based manufacturer of innovative compact track and skid steer loaders, has agreed to be acquired by a Japanese company for $70.7 million.
An affiliate of Osaka, Japan-based Yanmar Holdings will pay ASV shareholders $7.05 per share, ASV announced Thursday. Shares of ASV had closed Wednesday at $1.63 per share.
"Yanmar is a strong strategic buyer for ASV," Chairman and Chief Executive Andrew Rooke said. "Yanmar shares our vision to provide the highest-quality products, values the long legacy of ASV and is committed to supporting its employees and distribution partners."
The boards of both companies have agreed to the deal, but shareholders will need to approve the deal and other closing conditions must be met. Rooke expects the deal to close by the end of the third quarter.
ASV was founded in 1983 by Edgar Hetteen and Gary Lemke, both prominent names in Minnesota's snowmobile industry. Hetteen was a co-founder of Polaris Industries and the founder of Arctic Cat. Lemke was an early Arctic Cat dealer and was ASV's CEO until 2006.
ASV had an earlier run as a publicly traded company from 1984 to 2008, until it was acquired by Connecticut-based Terex Corp. for $488 million. Terex Corp. still owns 34% of the shares in ASV and has agreed to support the deal with Yanmar.
In May of 2017 ASV became an independent public company again with an initial public offering that raised $26.6 million.
Shares of ASV briefly traded over $10 per share in December 2017 but they have been under the IPO price of $7 per share since August and traded as low as $1.46 per share in May.
ASV has 179 employees and finished 2018 with $127.8 million in revenue, a 3.4% increase over the previous year, but lost $32.1 million. "The objective of both ASV and Yanmar is to continue to grow this business and expand the opportunities for people here," Rooke added.
Yanmar was founded in 1912 and has annual revenue in excess of $7 billion and almost 3,500 employees. Among its core products are agricultural machinery, construction equipment and diesel and industrial engines. ASV's North American manufacturing and distribution would help form a base for expansion of Yanmar's compact construction equipment in North America.
"We believe that the ASV acquisition will significantly bolster Yanmar's Compact Equipment offerings in the loader segment, a product range vital for success in the all-important North American market," said Giuliano Parodi, executive officer of Yanmar Holdings, in a news release.
Patrick Kennedy • 612-673-7926
