Gehl to Be Bought by France

Gehl Co., a West Bend manufacturer of compact construction and agricultural equipment, agreed to be acquired by France's Manitou BF SA, a global producer of material handling equipment, in a deal valued at $450 million. Under the agreement, Manitou subsidiary, Tenedor Corp., will launch a tender offer for all Gehl shares at $30 per share, followed by a 2nd-step, cash-out merger. The per-share purchase price reflects a 120% premium compared with Gehl's recent closing price. Gehl's current management team, including chairman and CEO, are expected to be retained. Manitou is Gehl's largest shareholder, owning more than 1.7 million shares, or 14.4%, of Gehl's outstanding stock. Manitou Group's president and CEO serves on Gehl's board of directors. Since 2004, Gehl's had a licensing and distribution agreement with Manitou under which Gehl produced two lines of telescopic handlers under the Gehl brand name for sale in the U.S. In a press release, CEO Gehl said the transaction is the next step in making the company "a more significant player in the global compact equipment marketplace."