Actuant Corporation (NYSE:ATU) announced today the signing of a definitive agreement to acquire Weasler Engineering, Inc. (“Weasler”). The purchase is subject to customary regulatory approvals and closing conditions, and is expected to close in June 2011. Total consideration for the transaction is approximately $155 million which will be funded from the Company’s cash and revolving credit facility. Weasler generated approximately $85 million in revenue in the past twelve months.
Headquartered in West Bend, Wisconsin, Weasler is a leading global designer and manufacturer of highly engineered drivetrain components and systems for agriculture, lawn & turf, and industrial equipment. Approximately sixty percent of Weasler’s revenue is derived from Original Equipment Manufacturers (OEMs) with the balance from aftermarket parts and services, primarily in North America. Weasler’s extensive product offering includes a broad range of drivetrain solutions used in the agricultural market including grain handling and hay foraging. In addition to drivetrains, Weasler also supplies a variety of torque limiters, high-end gearboxes, clutches and torsional dampers.
Commenting on the transaction, Robert C. Arzbaecher, Actuant’s Chief Executive Officer stated, “Weasler represents a great addition to Actuant’s Engineered Solutions segment. Its leadership position in North America, strong aftermarket presence and solid management team have allowed Weasler to generate above average growth. Given global demographic trends that are driving increasing grain, protein and food requirements, as well as Actuant’s ability to expand Weasler’s presence on a global scale, we expect this strong growth trend to continue.”
KeyBanc Capital Markets acted as advisor to Actuant for this transaction while McDermott, Will & Emery LLP served as legal counsel.
Actuant Corporation is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic and electrical tools and supplies; specialized products and services for energy markets and highly engineered position and motion control systems. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Actuant trades on the NYSE under the symbol ATU. For further information on Actuant and its businesses, visit the Company's website at www.actuant.com.
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant’s results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company’s new product introductions, the successful integration of acquisitions, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company’s Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.