JLG makes $200 million buy

May 11, 1999|By RICHARD F. BELISLE, Waynesboro

McCONNELLSBURG, Pa. - JLG Industries on Tuesday announced plans to buy Gradall Industries Inc., an Ohio-based construction equipment company, for $200 million.

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The buyout will have no effect on JLG's 3,000 employees, said Juna Rowland, director of corporate relations for the McConnellsburg-based aerial lift maker. Gradall has 800 workers, she said.

"The only effect it will have on the employees is that now they will be working for a bigger, stronger company," she said. "That will benefit everyone."

JLG officials do not expect the acquisition to result in restructuring at either company, she said.

"The transaction will create a diversified capital equipment manufacturer with combined revenues approaching $800 million for the most recent four fiscal quarters," Rowland said in a prepared release.


JLG reported income from sales of $531 million for the fiscal year ending July 31. Gradall reported sales of $183 million.

L. David Black, JLG board chairman, president and chief executive officer, called Gradall is a well-established company with a leading brand name.

"This acquisition brings JLG closer to our immediate goal of becoming a $1 billion company," Black said in prepared remarks. He said the purchase of Gradall fits well into JLG's strategy to diversify its operations.

Barry L. Phillips, Gradall president and chief executive officer, said his company expects to gain from JLG's strength in global markets. Rowland said the two companies will be able to share the same customer base.

Founded in 1946, Gradall makes rough-terrain, variable-reach material handlers and telescoping hydraulic excavators. Material handlers accounted for 60 percent of the company's business last year.

Gradall expects to benefit from a new federal highway bill that is expected to pump $167 billion in new highway and bridge construction into the nation's economy, according to Rowland's release.

Gradall has 430,000 feet of manufacturing space at its New Philadelphia, Ohio, plant and another 300,000 square feet in a newly purchased facility in Orrville, Ohio, the release said.

JLG, headquartered in McConnellsburg, also has manufacturing plants in Bedford County, Pa. It has sales and service facilities in Europe and Australia.

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