Troubled track-loader maker ASV Inc. has agreed to be acquired by Connecticut construction equipment giant Terex Corp. in a stock deal worth $488 million.
A shareholder vote will take place in the next 60 days, and the deal is expected to close at the end of the first quarter.
The deal values the stock of the Grand Rapids-based company at about $18 a share -- a 46 percent premium from its price at the end of last week. About 24 percent of ASV is owned by Caterpillar Inc., which will tender its shares.
Wall Street analysts congratulated the management on both sides of the deal. ASV's stock rose $5.50 to $17.79 a share in heavy trading Monday.
The stock's 52-week low of $10.11 came last fall as ASV felt the effects of the slowdown in the North American construction equipment industry. During the height of the housing boom the stock traded above $30.
"This combination with Terex is a perfect fit for ASV," ASV CEO Richard Benson said during a conference call with analysts. "We gain access to the resources and know-how of a much larger company with a very impressive global footprint."
ASV has about $220 million in annual sales, mostly from North America. Terex has nearly $8 billion in sales, more than 50 facilities around the globe and is strongest in Europe.
Officials said they have no plans for layoffs among ASV's 284 workers, because ASV makes a product that Terex doesn't have.
