Finning International has acquired the business and majority of the assets of Lex Harvey Limited, the UK-based materials handling company. The total purchase price was approximately $220 million, which will be funded through debt. The transaction is expected to close within 30 days.
The newly acquired company will be integrated into the existing Finning (UK) materials handling division. Finning (UK) will now operate one of the largest materials handling businesses in the UK, with 16,000 machines, over 1,300 employees and 2002 pro-forma materials handling revenues of $340 million.
The transaction increases Finning (UK) total revenues by 25% to $1.0 billion and is expected to be accretive to earnings in the first year of operations.
‘This acquisition will enable us to build on our strategic objectives of revenue and earnings growth, increasing shareholder value and achieving our long-term goal of 30% share in all our markets,’ said Doug Whitehead, President and CEO of Finning International.
Lex Harvey has a fleet of 12,000 machines and approximately 960 employees. For its most recent fiscal year, Lex Harvey recorded revenues of approximately $200 million.