Specialty vehicle manufacturer Oshkosh Corp. has entered into a definitive agreement to acquire Chicago-based company AeroTech from packaging machinery manufacturing company JBT Corp.
Oshkosh Corp. will acquire AeroTech from JBT Corp. in a $800 million, all-cash deal, according to a Tuesday announcement. Adjusted for the current value of expected tax benefits, the purchase price is $720 million. This represents approximately nine times EBITDA, according to the announcement.
AeroTech is a provider of aviation ground support products, gate equipment and airport services to commercial airlines, airports, air freight carriers, ground handling and military customers. AeroTech’s systems serve approximately 75% of air travelers at U.S. airports and load about 70% of the world’s overnight express packages.
Once the deal closes in the third quarter of this year, AeroTech will become part of Oshkosh Corp.’s vocational segment.
“This transaction supports our ‘Innovate. Serve. Advance.’ business strategy as we enter the attractive air transportation support space with a market-leading portfolio of purpose-built products and comprehensive service offerings,” said John Pfeifer, president and chief executive officer of Oshkosh Corp. “AeroTech meets all the criteria of our M&A priorities, and we believe it will enhance the financial profile of our vocational segment, further strengthening this growing segment and enabling it to move beyond our goal of $3 billion-plus annual revenue with double-digit margins.”
Oshkosh Corp. expects the deal to deliver approximately $20 million in annual cost synergies by year three.
