Oshkosh Truck Corporation has agreed to acquire 100% of the stock of Jerr-Dan Corporation for $80 million.
Jerr-Dan, headquartered in Greencastle, Pennsylvania, had annual sales of more than $100 million in 2003. The company product line includes light-, medium- and heavy-duty wreckers, as well as aluminum, steel and industrial carriers.
The acquisition strengthens Oshkosh's position as a specialty truck and truck body manufacturer, expanding its product lines and distribution network, according to Oshkosh.
"We believe there are opportunities for cross-market technology integration between Jerr-Dan and other Oshkosh subsidiaries,” said Robert G. Bohn, Oshkosh's chairman, president and chief executive officer. “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."
Jerr-Dan will operate as a wholly owned subsidiary of Oshkosh Truck Corporation, 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. The company would expect to provide additional financial details during its earnings conference call on July 27.