The Manitowoc Company Inc., one of the leading worldwide manufacturers of high-capacity, lattice-boom crawler cranes and tower cranes, has announced that it has executed a definitive agreement to acquire Grove Worldwide is one of the leading manufacturers of mobile hydraulic cranes and truck-mounted cranes. The acquisition, valued at approximately $270 million, will be funded by a combination of cash and approximately 2 million shares of Manitowoc common stock based on current market prices. “Grove enhances our market-leading positions, represents a strong growth opportunity for our crane segment and fills a product void by adding mobile cranes to our product offerings. Equally important, we now can provide equipment and lifting solutions for virtually any construction application,” said Terry D. Growcock, Manitowoc’s president and chief executive officer. “The addition of Grove confirms Manitowoc as the leading producer of lifting equipment worldwide.” Founded in 1947, Grove has an extensive product line including 30 crane models and eight aerial work platforms, with lifting capacity from 8 to 550 tons. Grove has long history of product innovations and patents and has sold more than 55,000 cranes worldwide. The company employs approximately 2,500 people, operates four manufacturing facilities in North America and Europe, and sells into more than 50 countries through distribution subsidiaries or agents. In fiscal year 2001, Grove reported revenues of more than $700 million. “In addition to its strategic value, this acquisition is well within our financial requirements in terms of earning and EVA,” said Glen E. Tellock, Manitowoc’s senior vice president and chief financial officer. “We expect Grove to be neutral to earnings in 2002. However, based on modest revenue increases, along with the many synergies we have identified between Manitowoc and Grove, we expect the acquisition to be accretive to earnings in 2003 of 20 cents to 30 cents per diluted share. Equally important, we expect the transaction to be EVA positive within the next 18 to 24 months.” “The Grove acquisition, combined with last year’s acquisition of Potain, the worldwide leader in tower cranes, gives Manitowoc the broadest product line in the business,” said Rob Giebel, president of Manitowoc’s Crane Group. “We now have access to a mobile telescopic crane market worth an estimated $3 billion worldwide, and we’re pleased to offer our customers a complete line of crane products from three world-class brands.” In the transaction, Manitowoc will issue shares of common stock to Grove shareholders and will assume or retire all of Grove’s existing debt. Deutsche Banc Alex. Brown, who advised Manitowoc in the transaction, has provided a financing commitment to Manitowoc. The transaction is subject to a number of conditions, including Grove shareholder approval and regulatory approvals. Grove emerged from Chapter 11 reorganization in September 2001. Former creditors of Grove received substantially all of the stock ownership of the new Grove. Salomon Smith Barney advised Grove in the negotiations with Manitowoc. For more information, visit www.manitowoc.com. CEG
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