The Caterpillar TH210 compact telehandler.

JLG Industries Inc expects to start shipping Caterpillar-branded telehandlers to European dealers in August and North American dealers in November.

"The Maasmechelen (Belgium) assembly line is complete and preproduction is underway," chief executive Bill Lasky said. He was discussing the evolving strategic alliance during a quarterly conference call. Meanwhile, in McConnellsburg, "the North American Cat-branded machine testing is underway".

In late 2005, JLG and Caterpillar Inc concluded a 20-year, private-label agreement calling for JLG to design, manufacture and sell Caterpillar-branded telehandlers for distribution exclusively through Caterpillar dealers (Forkliftaction.com News #237).

JLG agreed to pay USD52.1 million for the Caterpillar telehandler assets. Property, plant and equipment accounted for USD7.7 million of the payment. Transaction fees totalled USD600,000.

JLG said it anticipated Caterpillar-alliance-related capital expenditure of USD16.9 million during the current fiscal year ending on July 31.

"We made this asset acquisition because of its strategic fit and adherence to our growth strategy and acquisition criteria," JLG said. "The acquisition was an addition to our machinery segment and has been accounted for as a purchase."

JLG is developing its North American Caterpillar telehandler product line and improving capacities in Belgium and Pennsylvania to accommodate the additional volume.

McConnellsburg-based JLG and Caterpillar, of Peoria, Illinois, USA, agreed not to compete during the life of the agreement.