Industry BeatCED Magazine, February 2010
Article Date: 02-01-2010
Copyright(C) 2010 Associated Equipment Distributors. All Rights Reserved.
Berry Companies Purchases Bobcat Operations from Conley Lott Nichols
The acquisition, No. 5 in Berry-owned Bobcat dealerships, gives the company substantial north-Texas presence.
Berry Companies, Inc. recently completed the purchase of the Bobcat operations of Conley Lott Nichols of Texas, Inc. With three branches in Proving (Dallas), and one in both Fort Worth and Long View, the company will have a significant presence in the north Texas market. The Bobcat operations of Conley Lott Nichols had been serving the market since 1989.
“This announcement complements Berry Companies’ long-term growth plans and continues to broaden the company’s distribution network by expanding into the important markets surrounding the north Texas area,” said Walter Berry, president of Berry Companies. “This further allows us to pool our five-state distribution network in a manner to serve our customers in the best way possible.”
According to Berry, the deal first came to their attention in August and they were able to put it together relatively quickly. The Berry Companies purchased a Houston operation from Conley Lott Nichols about 10 years ago. “Times like these create opportunities,” said Berry, who is hoping the Texas market will soon recover from the current downturn. “We’re in it for the long haul.”
For a customer walking in, Berry believes there won’t be too much of a change. “They have been taken care of well in the past, and that will continue,” said Berry. “The main thread is the Bobcat product.”
Cole Young has been named division manager of Bobcat of Dallas, Bobcat of Fort Worth, and Bobcat of Long View. Prior to his appointment, Young was sales manager of the Kansas City operation. All of the Conley Lott Nichols employees will now be working for the Berry Companies.
Real estate was not included in the transaction, so the company is currently leasing the space. They will be co-locating with Conley Lott Nichols at the Proving location, but plan to own their own facilities in the future.
Berry Companies, based in Wichita, Kan., has been in the construction equipment distribution industry since 1957. The company has eight different divisions, including five Bobcat operations: White Star Machinery, Wichita, Kan.; Bobcat of the Rockies, Golden, Colo.; KC Bobcat, Blue Springs, Mo.; Bobcat of Houston, based in Jersey Village, Texas; and now Conley Lott Nichols.
Sumitomo Invests in Sunstate Equipment
Sumitomo Corporation, through its subsidiary, SMS International Corporation, has invested $50 million dollars in convertible preferred interests of Sunstate Equipment Co., LLC. Sunstate rents aerial and construction equipment at 52 branch locations in eight states in the southwestern U.S. Sunstate was founded in 1977 and has annual sales of $227 million.
Although the U.S. construction equipment rental industry has been experiencing a severe downturn since the financial crisis, Sumitomo says it likes the long-term growth prospects of the market and believes this is an excellent time to enter the market. According to Sumitomo, the U.S. rental market is valued at $30 billion, and rental penetration rates continue to increase year after year.
Sumitomo is the first Japanese company to make a full-scale investment in the U.S. equipment rental industry. Sumitomo currently operates construction equipment dealerships in North America with annual sales of approximately JPY 150 billion. Sumitomo also has an existing equipment rental business in Canada with 15 branch locations operating under the name “SMS Rents.”
Boyd Company to Purchase Walker Machinery Co.
After 59 years as a heavy equipment distributor and 56 years as a Caterpillar dealer for the western part of West Virginia and southeastern Ohio, the Walker Family is exiting the business. The company has signed a letter of intent to sell Cecil I. Walker Machinery Co. and Walker Realty Co. to the Boyd Company, LLC, owner of Whayne Supply Co., the Caterpillar dealer for Kentucky and southern Indiana, headquartered in Louisville, Ky. The parties are attempting to consummate the sale in early 2010.
The Boyd Company is owned by Monty L. Boyd, a former Caterpillar employee who has been associated with Whayne Supply since 1984. The Boyd Company, LLC is purchasing the stock of Cecil I. Walker Machinery Co. and Walker Realty Co.
It is the intention of the Boyd Company, LLC to continue to operate Walker Machinery “as is” and continue the name of Cecil I. Walker Machinery Co. By a stock sale, the assets, liabilities and obligations are transferred to the new ownership. Contracts, including labor agreements with The Operating Engineers, Local 132, remain intact.
Metrolift Announces Expansion
Metrolift, Inc., an independently owned, full service provider of aerial lift equipment and services, has leased 30,000 feet of additional shop space and two acres of yard space adjacent to their existing location in the Chicago suburb of Sugar Grove, Ill. Growing rental volume plus expansion of Metrolift Sales & Service LP Wholesale division facilitated the need for additional indoor and outdoor space. Metrolift is the second largest single location equipment rental company in the U.S. The company invested more than $2 million in rental fleet assets this year.
Texana Machinery Acquired by ASCO
ASCO Equipment of Lubbock, Texas, has recently completed the purchase of Texana Machinery of San Antonio and Austin. With this purchase, ASCO adds two major markets and the 38-county Case Construction
Equipment marketing area to its roster of 10 equipment dealerships located throughout West Texas, the Texas Panhandle and New Mexico.
ASCO will maintain the existing Texana management, sales and service staff and will continue to market all current Texana products. Now celebrating 50 years in business, ASCO is a third generation family-owned and operated company with more than 260 employees. Texana was founded in San Antonio in 1994.
IN THE NEWS
John Crum has been appointed national sales manager of Wells Fargo Construction, a division of Wells Fargo Equipment Finance, Inc. (WFEFI) Crum will direct five originations teams that each call on infrastructure contractors, construction equipment dealers and equipment manufacturers in the U.S. and Canada. Crum succeeds Ron Riecks, who retired Jan. 31. Riecks was a 30-year veteran of the equipment finance industry. He joined CIT in 1979 and moved up the ranks to become president of CIT Construction in 2005. He came to Wells Fargo when WFEFI acquired CIT Construction in 2007.
According to Byron Payne, executive vice president and head of Industry Finance at WFEFI, “Riecks’ legacy will be a passion for people and an industry expertise applied to develop long-standing relationships that helped construction executives achieve their financial goals.”
Wells Fargo & Company has redeemed the $25 billion of series D preferred stock issued to the U.S. Treasury under the Troubled Asset Relief Program’s Capital Purchase Program. By repaying the TARP investment, Wells Fargo will eliminate $1.25 billion in future annual preferred stock dividends. The company sold 489.9 million shares of common stock at $25.00 per share for a total of $12.25 billion in a common stock offering completed Dec. 18, 2009. Net proceeds of this common stock offering and excess liquidity were used to repay the $25 billion TARP investment and accrued dividends.
Volvo Construction Equipment is consolidating its North American industrial operations by closing the Asheville, N.C., manufacturing facility by March 31, 2010. The closing will affect 228 employees. The manufacturing of wheel loaders will move to Arvika, Sweden; excavators will be produced in Changwon, South Korea and Cabs for motor graders will be moved to Shippensburg, Pa., USA.
“This decision has no impact on the ongoing significant investments in Shippensburg, Pa., USA, where the Volvo CE plant is being expanded to receive the motor grader production and the manufacturing of grader cabs,” said Olaf Persson, president and CEO of Volvo CE.
In addition, Volvo reached an agreement with Alta Equipment Company for the sale of certain assets of its former dealer in Michigan, Wolverine Tractor & Equipment. Volvo also appointed Alta Equipment Co. as its authorized dealer in the state of Michigan as of Jan. 1, 2010.
Terex Corporation has signed a definitive agreement to sell its mining business to Bucyrus International Inc. for $1.3 billion in cash. The products to be divested by Terex in the transaction include hydraulic mining excavators, electric drive mining trucks, track and rotary blasthole drills, and the highwall miner, as well as the related parts and aftermarket service businesses, including the company-owned distribution locations. The transaction, which is subject to customary regulatory approvals, is expected to close in the first quarter of 2010.
San Diego-based Hawthorne Cat has opened an additional service shop for Compact Construction Equipment (CCE) for North County customers. The CCE service shop will be utilizing the full-service San Marcos, Calif., facility located at 1600 East Mission Road. Hawthorne will also continue to have parts support for CCE and all other equipment at all three locations including San Diego, San Marcos and Lakeside, Calif.
Cowin Equipment Company of Birmingham, Ala., now offers the full line of Doosan Infracore Portable Power products in the Atlanta market. The company offers Ingersoll Rand-branded air compressors, generators, lighting systems and light compaction equipment.
Titan Machinery opened a new store in Albert Lea, Minn., to represent the New Holland brand in Southern Minnesota and Northern Iowa.
Veritas Risk Services, an employee benefits consulting firm specializing in the equipment industry, has successfully launched the Equipment Dealers and Distributors Employee Benefits Captive (EDDEBC). The EDDEBC provides dealers and distributors with a much needed alternative to the traditional way a company purchases health insurance for its employees.
The captive affords AED members the opportunity to save from 10 to 30 percent off their current premiums by pooling risk, removing carrier profits, and effectively reducing medical claims over time, all while not changing the current medical plan design or increasing their administrative burden. As a result, EDDEBC member companies will reduce their medical insurance costs for themselves as well as for their most valuable resource: their employees. For more information, call Joe Zamzow at 630-734-3500, or firstname.lastname@example.org
Atlas Copco has agreed to acquire Quincy Compressor from EnPro Industries, Inc. The acquisition supports Atlas Copco’s profitable growth in North America and China, adding a strong brand and an extensive distributor network.
Also,Dynpac LLC, a company within Atlas Copco, will become fully integrated into the sales organization for all Atlas Copco Construction products sold in the U.S. market.
JLG Industries, Inc. has been named to the Cat Rental Store preferred allied vendor list for the 10th consecutive year.
Samuel R. Allen becomes chairman of the board of Deere & Co., effective at the conclusion of the Feb. 24, 2010, annual meeting of stockholders. Allen will continue as Deere & Company president and chief executive officer. The Deere & Co. board of directors voted to reduce the size of the board to 11 members, effective at the same time as Allen becomes chairman.
Godwin Pumps, worldwide manufacturer and supplier of the Dri-Prime automatic self-priming pump, announces the addition of Bill Price to the newly-created position of Asset, Logistic, and Transportation Manager. Based in Godwin’s Bridgeport, N.J., world headquarters, Price will coordinate equipment relocation, including branch-to-branch equipment transfers. In addition to equipment transportation duties, Price will facilitate the utilization of Godwin’s newly implemented enterprise software in all facets of dispatch and freight.
Hyundai Construction Equipment U.S.A. has expanded its operational reach to cover all of North, Central and South America. The company will be adding the current Central and South American dealer network and its many opportunities for expansion to its network of CE and FL dealers in North America. A corporate name change for Hyundai Construction Equipment U.S.A. is anticipated.
Chuck Leone has been appointed national sales manager for the Forklift division of Hyundai Construction Equipment U.S.A., based in Elk Grove Village, Ill. He will be responsible for Hyundai’s forklift business in the Americas.
Franklin Chang Díaz, chairman and CEO of Ad Astra Rocket Company and former NASA astronaut, has been elected to theCummins’ board of directors. Chang Díaz, 59, is the 10th Cummins board member, and will serve on the board’s Safety, Environment and Technology Committee, as well as the Audit, Finance and Governance and Nominating committees. His term begins immediately and he will stand for re-election at the company’s annual meeting next May.
Rich Freeland has been named president of Cummins Engine Business. Freeland, currently president of the Components Business, will succeed Jim Kelly who will lead a number of key cross-business strategic projects.
Anant Talaulicar will succeed Freeland as president of the Components Business while continuing to serve in his current capacity as managing director of Cummins India. Both Freeland and Talaulicar will assume their new roles in March 2010.
Iowa Mold Tooling Co. Inc. (IMT), an Oshkosh Corporation company, recently opened a new facility in McIntire, Iowa, to handle increased welding activities, creating about 40 welding jobs. IMT has also hired more welders at its main facility in Garner, Iowa. Business at IMT increased significantly in 2009, primarily due to a partnership between IMT and its parent company, Oshkosh Corporation, that supports the military’s need for new equipment overseas.
Hal Kalousek, a long time AED manufacturer and dealer member, died Dec. 17, 2009, at his Olathe, Kan., home. Kalousek was a cofounder of Airplaco Manufacturing and of Halco, Inc., a Kansas City based dealership. He was 87 years old.
Steve Shaughnessey has been appointed president of Skyjack, Inc, a Linamar subsidiary. Shaughnessey will be succeeding Ken McDougall, who has been given the responsibility for Linamar’s powertrain Mexico operations.
Ed Clowdus has been named Paltec’s southeast regional vice president of operations, while Ed Gerken, has been named Paltec’s Midwest regional vice president of operations.
ALL Erection & Crane Rental Corp. introduced the 3D Lift Plan, an Internet-based application, developed by A1A Software. The 3D lift-planning and crane selection application allows the planning of complex, multiple-crane lifts. It will be available on all onboard crane computers in the ALL fleet.
Genie Industries, a Terex subsidiary, has sold its Load King Specialized Trailer Business to Manitex International, Inc. for a total consideration of $3.1 million. Load King Trailers, an Elk Point, S.D.-based manufacturer of custom trailers and hauling systems, has averaged annual revenues of $23 million for the past five years.
Tim Maxon has been named president and general manager of Load King.
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