Oshkosh Truck Corp., the Wisconsin-based manufacturer of specialty trucks and truck bodies, has agreed to acquire 100% of the stock of Jerr-Dan Corp.,
which manufactures towing and recovery equipment, from an affiliate of Littlejohn Co. for $80 million.
Jerr-Dan, headquartered in Greencastle, Pa., had annual sales of more than $100 million in 2003.
This acquisition strengthens Oshkosh's position as a leading specialty truck and truck body manufacturer, expanding its product lines and distribution network. "Jerr-Dan is a top name in the towing and recovery equipment market, and we believe they are a great fit with Oshkosh Truck," said Robert G. Bohn, Oshkosh's chairman, president and chief executive officer.
Jerr-Dan sells a complete product line to towing services and salvage companies including light, medium and heavy duty wreckers, as well as aluminum, steel and industrial carriers. Oshkosh management anticipates manufacturing and purchasing synergies between the two organizations.
Jerr-Dan is recognized as a leader in product development and technology with its introduction of aluminum carrier decks, independent underlifts and composite bodies.
"We believe there are opportunities for cross-market technology integration between Jerr-Dan and other Oshkosh subsidiaries. For example, Oshkosh has delivered more than 2,500 heavy-duty wreckers to the military, and Jerr-Dan developed one of the first composite bodies in the towing industry, similar to what Oshkosh has accomplished in the concrete placement industry," said Bohn.
Jerr-Dan will operate as a wholly owned subsidiary of Oshkosh Truck, and will be part of the corporation's fire and emergency business. Completion of the transaction is subject to certain customary conditions, including receipt of required regulatory approvals, and is expected to occur in July. Oshkosh expects to finance the acquisition from available credit facilities.