Yanmar, which makes wheeled loaders and excavators, said that the addition of ASV’s compact track loaders and skid steer loaders to its product line created no overlap in product or distribution networks.
It also gives the Japanese company a strong platform for North American expansion, it said.
The deal remains subject to shareholder approval but already has the approval of Terex Corp, which owns 34% of ASV.
ASV chairman and chief executive Andrew Rooke said: “We are excited to announce this value-maximising transaction with Yanmar. Yanmar is a strong strategic buyer for ASV. Yanmar shares our vision to provide the highest-quality products, values the long legacy of ASV and is committed to supporting its employees and distribution partners. In addition to maximizing value for ASV stockholders, the merger will create a strong platform for growth and expansion, bringing together two leading brands with similar cultures and creating value.”
He added: “The ASV product is complimentary to the Yanmar portfolio of compact equipment creating a comprehensive equipment solution for current and future customers. Yanmar Compact Equipment will gain its only manufacturing facility in North America, here in Grand Rapids, Minnesota, and will contribute its considerable global presence and financial strength, making way for continued product development and innovation within the track loader and compact construction equipment category for years to come.”
Yanmar executive officer Giuliano Parodi said: “We believe that the ASV acquisition will significantly bolster Yanmar’s compact equipment offerings in the loader segment, a product range vital for success in the all-important North American market. With its highly-skilled workforce and quality CTL/SSL line-up, ASV is a great fit for both Yanmar’s focus on quality, and our growth and expansion plans in the North American and global markets as it will create a comprehensive and global provider of compact equipment with virtually no overlap in distribution networks.”
ASV: a brief history
ASV was founded in 1983 in Minnesota by Edgar Hetteen and Gary Lemke, who were pioneers in the snowmobile industry, to make rubber-tracked utility vehicles. In 1990 ASV introduced the first Posi-Track rubber track loader to meet the needs of construction, agricultural and landscaping industries.
In 2008 ASV was taken over by Terex. A line of ASV-built skid-steer loaders was added to the Terex product line in 2011.
In 2014 Terex sold 51% of the company to Manitex, allowing ASV to begin marketing its own line of compact track loaders, once again under the ASV brand in 2015.
In 2017 ASV Holdings Inc completed its initial public offering to become an independent public company trading on NASDAQ.