The terms of the deal included US$250,000 in Manitex common stock and a $2.75 million five year note bearing interest at 6%, for an aggregate purchase price of $3 million. Badger, which was acquired from Avis Industrial, a privately held company, had revenues of about $10 million, EBITDA of around $500,000 and positive net income in 2008, said Manitex International.
Earlier this year, Badger Equipment announced plans to introduce a new line of specialized rough terrain cranes, including a 30 US ton (27 tonne) model to its national dealer base, with shipments expected to begin in the second half of 2009.
"We are excited to add another niche product line to the Manitex family. The acquisition of Badger's specialized product lines will expand our market opportunities," said David Langevin, Manitex International chairman and CEO.
"We anticipate moderate revenue and cash flow contributions in the second half of this year from Badger, with more substantial impact occurring in following years, primarily driven by the strength of this new product's launch, Langevin added.