New Holland Acquires Orenstein and Koppel
24 November 1998New Holland Acquires Orenstein and Koppel
AMSTERDAM, The Netherlands, Nov. 24 -- New Holland N.V. today announced that the Company's Board of Directors has approved an agreement to acquire 75.1% of the outstanding shares in O&K, Orenstein & Koppel Aktiengesellschaft, the German manufacturer of hydraulic excavators and construction equipment, from Fried. Krupp AG Hoesch-Krupp. Terms of the agreement were not disclosed. The agreement is subject to satisfaction of certain conditions, and approval by the European Commission. The transaction is expected to close by the end of 1998. The remaining 24.9% of the outstanding shares in O&K are publicly traded in Germany. "Orenstein & Koppel has established a strong position in the demanding German market through its long tradition of sophisticated design and exceptional quality," Umberto Quadrino, New Holland's Chief Executive Officer said. "The outstanding O&K product line will significantly enhance our presence in North and South America. This will complement Fiat-Hitachi's success across the markets of Europe, Africa and the Middle East, where we continue to invest in the complete renewal of the Fiat-Hitachi product line in conjunction with our partner, Hitachi Construction Machinery Co., Ltd." New Holland Construction, the North American construction division announced on November 4, 1998, will introduce a full line of O&K hydraulic excavators in North America during the coming year. O&K will also supply New Holland Construction with hydrostatic wheel loaders. In Latin America, New Holland will sell O&K hydraulic excavators under the Fiatallis brand name in selected markets. In Europe, O&K will maintain its own distribution network and will continue to market its product line under the O&K brand name. New Holland will strengthen the O&K organization with a rapid expansion of its research and development activity. Founded in Berlin in 1876, O&K began building excavators in 1908, and quickly established a reputation for innovation in excavator design and manufacture. The company designs and manufactures both crawler and wheeled excavators. O&K is the industry leader in grader technology, and is well known for both large wheel loaders and hydrostatic wheel loaders. The company employs about 2,000 people across Europe and is expected to generate sales of approximately DM800 million in 1998. New Holland is a world leader in the design and manufacture of a full line of agricultural and construction equipment, and offers a rapidly expanding line of financial services in many of its markets. The Company and its joint venture partners operate through a global network of over 6,000 dealers and distributors. Consolidated net revenues exceeded $6 billion in 1997.