Gehl Strikes Deal with Manitou

July 23, 2004 - Gehl Co., West Bend, Wis., and the Manitou Group, Nantes, France, have formed a strategic partnership to sell each other's telescopic handlers in the United States, beginning in 2005.

 

In an effort to combine their strengths and complete their product ranges, both companies have decided to establish two simultaneous agreements. The first is a manufacturing license and supply agreement, which allows Gehl to manufacture under license two series of compact Manitou telescopic handler models. These models will be sold through Gehl distribution networks under the Gehl name with Gehl's color and insignia.

 

The second agreement is a reciprocal OEM supply agreement, which allows each company to complete its range of telescopic handlers distributed in the United States by models designed and manufactured by the other company. Both companies will distribute all available products through their own distribution channels and under their own name, color, and insignia.

 

In conjunction with the partnership, Manitou purchased nearly a million shares of Gehl stock for $19.8 million. With this purchase, Manitou now owns a 15 percent stake in the Gehl Co. Manitou's Chief Executive Officer Marcel Claude Braud also has been nominated for election to the Gehl Co.'s board at its next annual shareholders meeting, tentatively set for April 2005. Although this purchase reflects a commitment to the business alliance, it does not suggest Manitou will eventually buy a controlling stake.