IMT Acquired by Oshkosh Truck Corp.
Iowa Mold Tooling Co., Inc. (IMT), Garner, Iowa, signed a $131 million all-cash agreement in which it will be acquired by Oshkosh Truck Corp., Oshkosh, Wis. IMT is currently a portfolio company of American Capital Strategies, Ltd., and is expected to operate as a wholly owned subsidiary of Oshkosh Truck Corp.'s commercial segment once the acquisition is complete. Completion of the transaction is subject to certain customary conditions and is expected to occur prior to September 30, 2006.
The acquisition is Oshkosh Truck's second in fiscal 2006 to support its diversification strategy in the commercial specialty truck industry. It will provide entry into two adjacent markets, significantly strengthening Oshkosh's North American distribution channel and providing new technology integration opportunities for other Oshkosh businesses. IMT currently has more than 80 dealers throughout North, and it recently instated a lean initiative to improve its manufacturing processes.
"IMT has built leadership positions in terms of market share, technology, distribution, and brand recognition within the service vehicle and truck-mounted crane markets,” said Robert G. Bohn, Oshkosh chairman, president, and chief executive officer. “The company provides an opportunity for further expansion within the construction, mining, and tire service markets."
Bohn noted the opportunity to increase its product and service offering to construction customers and to enter new specialty markets was an appealing aspect of this acquisition. He also said Oshkosh Truck believes there is “additional growth potential for IMT in adjacent market spaces, among government and international customers, and in aftermarket parts and services for its existing customers.”