Ambitious Doosan acquires Bobcat
Thursday, 2 August 2007
INCHEON, Korea, Republic Of
A Bobcat V518 telehandler
Construction equipment and forklift manufacturer Doosan Infracore has signed a definitive agreement to acquire three of Ingersoll-Rand Company Ltd's businesses including Bobcat, for USD4.9 billion.
The deal could be South Korea's largest overseas acquisition.
Doosan Infracore vice chairman Yongmaan Park says Doosan will maximise on the synergies from the Bobcat acquisition to achieve its aim of ranking in the top five of global construction equipment companies.
The acquisition of Bobcat, a world-leading compact construction equipment business, will place Doosan in the top seven in the sector, a Doosan statement says. Bobcat makes telehandlers, loaders, excavators, utility products, light construction equipment and attachments. Other Ingersoll-Rand businesses in the agreement are Ingersoll-Rand's utility equipment and attachments businesses.
In 2006, the three businesses generated about USD2.6 billion in sales and USD370 million in operating profits and currently have the highest world market share in their sectors. The businesses have over 2,700 dealers in the US and Europe and operate 16 factories in six countries, according to the statement.
Doosan says its distribution and manufacturing network will increase to over 3,700 dealers worldwide and 20 plants in countries including US, China, Belgium, France and the Czech Republic.
Doosan sales are expected to increase to about USD7.4 billion and its global ranking rise from 19th to seventh in the construction equipment sector post acquisition.
The statement says the company intends to continue the acquired businesses with their current management and employees.
"The businesses we are acquiring have outstanding management personnel and engineers, which we consider the most important criteria of our acquisition strategy," Park says.
With the acquisition, Doosan adds compact construction equipment to its portfolio of medium and large-scale construction equipment lines and provides the company with world-leading technologies and brand names.