Proposed Acquisition Enhances Oshkosh As A World Leader
OSHKOSH, Wis.--June 29, 2001--Oshkosh Truck Corporation , a leading manufacturer of specialty trucks and truck bodies, and Powell Duffryn Limited have agreed that Oshkosh Truck will acquire 100 percent of the stock of the Geesink Norba Group, a leading European manufacturer of refuse collection vehicles. Oshkosh Truck will pay Euro 150 million (approximately $127.5 million at 0.85 U.S. dollars to the Euro) in cash for the company. Following Powell Duffryn's December 2000 acquisition by Prestige Acquisitions Limited, the company is selling the Geesink Norba Group as part of a strategy to divest itself of engineering related businesses. The announcement was made jointly by Robert G. Bohn, Oshkosh's chairman, president and chief executive officer, and Stephen C. Harris, chairman of Geesink Norba Group and executive director of Powell Duffryn Ltd.
The move makes Oshkosh Truck, which produces extremely popular refuse truck bodies under the McNeilus(R) brand, a top worldwide producer of refuse collection bodies. It further strengthens Oshkosh Truck's position in the international specialty vehicle industry by significantly broadening its refuse product lines, distribution and manufacturing operations. The Geesink Norba Group manufactures and markets a comprehensive line of refuse collection bodies, compactors, transfer station compaction equipment and containers.
Geesink Norba products will continue to be offered through their wholly owned distribution system, while providing the opportunity to sell and service select Oshkosh and McNeilus brand products for the European market as well. In addition, Oshkosh's existing distribution network offers significant opportunities for introducing Geesink Norba products to the North American market.
"The Geesink and Norba brands have tremendous recognition in the European refuse collection market, as does McNeilus in North America. By combining these three brands, Oshkosh becomes a world leader in refuse collection bodies, capable of serving global waste services companies on both sides of the Atlantic," said Robert G. Bohn, Oshkosh's chairman, president and chief executive officer.
"The combination of Geesink Norba, Oshkosh and McNeilus creates a tremendous platform for global growth. This acquisition continues Oshkosh's long-term strategies of niche market leadership, acquisition and global expansion," stated Bohn.
Geesink Norba will operate as a wholly owned subsidiary of Oshkosh Truck Corporation. The transaction is expected to close in late July, subject to customary conditions. Oshkosh expects to finance the acquisition via an amendment to its Senior Credit Facility that adds a $140 million Term Loan B.
The European market rivals the U.S. refuse collection equipment market in size. Limited landfill space in Europe is leading to equipment appropriate for longer refuse transportation distances. That trend combined with higher per capita waste volumes and the growth of Eastern European economies lead Oshkosh to expect consistent, long-term growth in the European refuse collection body market.
The Geesink Norba Group has annual revenues of approximately $120 million.
The proposed acquisition complements Oshkosh's extensive refuse collection body offering, by adding a comprehensive line of refuse collection bodies for residential, commercial and industrial waste in European markets. The company also manufactures and sells compactors, transfer station compaction equipment, containers, and container handling equipment throughout Europe.
"Geesink Norba has a reputation for building highly efficient, extremely durable and advanced products. Its commitment to satisfying customers through innovation, reliability and performance is a good match for Oshkosh's philosophy. We look forward to continuing the great tradition of the Geesink and Norba brands in the market.
"Given the strength of the Geesink(R) and Norba(R) brands in Europe, and the tremendous success of McNeilus products in North America, we expect to combine technologies across product lines and across the ocean to set new performance benchmarks for our customers worldwide. We intend to increase the rate of new product development on both sides of the Atlantic in keeping with our core growth strategy," said Bohn.
Expands International Distribution
In addition to expanding Oshkosh's refuse market strategy and product line, the proposed acquisition dramatically strengthens Oshkosh's European distribution system. Geesink Norba has a wide, direct-distribution network for refuse collection equipment in Europe. The company has locations in the Netherlands, Sweden, United Kingdom, Germany, France, Italy, Spain, Belgium, Denmark, and Poland. In addition, it has exclusive distributorship arrangements in Finland, Norway, Austria, Switzerland, Ireland, Greece and Israel. All locations provide sales and service for both Geesink and Norba brands.
"The fit between Oshkosh and Geesink Norba is only accentuated by our similar approaches to customer service and distribution. Around the clock service, overnight parts delivery, and on-site training are common to all of our brands. Geesink Norba's distribution parallels our McNeilus brand's North American distribution network.
"Many of our refuse customers are large multinational conglomerates. We can use Geesink Norba's widespread international service network to serve major customers better, regardless of their location. Taking it a step further, Geesink Norba's distribution was particularly attractive to us, because it's highly adaptable to our other product lines. In fact, our newly acquired facilities and offices in the United Kingdom will substantially strengthen our ability to support our important customer there, the U.K. Ministry of Defence, as a U.K. business," explained Bohn.
State-of-the-Art Operations
The proposed acquisition includes three major manufacturing facilities and three assembly operations. Geesink Norba Group's 253,544-square-foot manufacturing plant and headquarters in Emmeloord, Netherlands, is dedicated to the design and production of refuse collection bodies. A 79,115-square-foot facility in Maarheeze, in the southern Netherlands, is focused primarily on mobile and stationary compactors. And Oshkosh gains an 84,250-square-foot facility in Blomstermala, Sweden, where Norba brand products are produced.
In addition to its primary production facilities, Geesink Norba has facilities across Europe for mounting Geesink and Norba brand refuse collection bodies. Located in the United Kingdom, Germany and France, these operations provide direct sales and support for customers in those regions. The company's United Kingdom operations include locations in Cardiff, St. Albans, and Manchester. These facilities employ approximately 150 people in sales, refuse body mounting, and service for the region.
Production automation and robotics are featured extensively throughout all production facilities. Geesink Norba also benefits from significant vertical integration. It manufactures many parts and components typically purchased by its competitors.
Geesink Norba's quality systems are ISO 9001 certified. ISO 9001 is the leading, worldwide standard for quality assurance.
The Geesink Norba Group, a division of Powell Duffryn Limited, is a leading manufacturer of refuse collection truck bodies, mobile and stationary compactors, and transfer stations. Headquartered in Emmeloord, Netherlands, the company's products are sold throughout Europe and around the world through a wholly owned distribution network for all aspects of the collection, compaction and transportation of solid waste.