Veri-Tek Announces Acquisition of Noble Rough-Terrain Forklift Business


BRIDGEVIEW, Ill., Aug. 1 / -- Veri-Tek International, Corp. (AMEX:VCC), a leading North American manufacturer of engineered lifting equipment, announced today that it has signed a definitive agreement to acquire the Noble Rough-Terrain Forklift business from GT Distribution. This transaction is expected to close early in the third quarter.

"We are very pleased to add the Noble Rough-Terrain Forklift business to our line of specialized lifting equipment," commented David J. Langevin, Chairman and Chief Executive Officer of Veri-Tek International. "The Noble product line, was originally designed and marketed by Caterpillar in 1983, and was subsequently marketed through Eagle Pitcher's dealer network. Noble has a reputation for providing durable, innovative and high quality products, and as a result, the Noble product has benefited from very strong distribution, and has a large installed base giving rise to a healthy after-market parts business. Moreover, this acquisition will benefit from our current operating manufacturing base and adds breadth to our existing Liftking rough terrain forklift product line without increasing our existing facilities or manpower. Our sales and marketing team is excited about the opportunity to offer an expanded high quality rough terrain product line to our customers, while also gaining access for all our products to Noble's established dealer network."

President and Chief Operating Officer, Andrew Rooke, noted, "We believe that Noble is an excellent strategic fit for us and that the Noble business will be accretive to our annual operating earnings beginning with the current year. Noble is a time-tested, valuable brand with a loyal customer base. The Noble business has historically generated operating margins similar to those of our Liftking subsidiary on sales volumes of about $20 million, but in recent times, as a result of changing facilities and ownership, this company has not kept up with the demand for its products. However, it has retained its most valuable assets, its distribution and reputation for quality products. We believe that we are uniquely positioned to, in a reasonable time, restore this business to its historic performance and thereby enhance Veri-Tek's performance overall."

As consideration for the assets of the Noble business, Veri-Tek will release GT Distribution from its pre-existing debt to Veri-Tek in the amount $4.2 million.

About Veri-Tek International, Corp.
Veri-Tek International, Corp. is a leading provider of engineered lifting solutions including boom truck cranes, rough terrain forklifts and special mission oriented vehicles. Our Manitex subsidiary manufactures and markets a comprehensive line of boom trucks and sign cranes. Our boom trucks and crane products are primarily used in industrial projects, energy exploration and infrastructure development, including roads, bridges, and commercial construction. The Manitex Liftking subsidiary manufactures and markets a complete line of rough terrain forklifts and special mission oriented vehicles, as well as other specialized carriers, heavy material handling transporters and steel mill equipment. Manitex Liftking's rough terrain forklifts are use in both commercial and military applications.

Company Contact
Veri-Tek International, Corp.
David Langevin
Chief Executive Officer
(708) 237-2060
djlangevin@manitex.com

Source: Veri-Tek International, Corp.

All Topics