Douglas Dynamics to Acquire Dejana Truck and Utility Equipment
Douglas Dynamics has announced its intention to acquire Dejana Truck and Utility Equipment for $206 million, with the deal anticipated to be finalized in the third quarter of 2016.
Strategic Expansion
This acquisition is seen as a strategic move for Douglas, a manufacturer of vehicle attachments and equipment, to bolster its market position. According to the company, Dejana will provide additional opportunities in the Class 4-6 truck category, enhancing its commercial vehicle segment and promoting growth prospects.
Leadership Statement
James L. Janik, chairman, president, and CEO of Douglas Dynamics, remarked, “Bringing Dejana into our fold will significantly enhance our standing as a leading manufacturer and upfitter of vehicle attachments and equipment. This acquisition offers a new complementary range of services and products that will strengthen customer relationships and extend our geographic reach in the Eastern U.S.”
Management Continuity
Following the acquisition, Dejana’s president, Andrew Dejana, along with the current management team, will continue to lead the company. Dejana operates seven manufacturing and upfit facilities located in the Northeast and Mid-Atlantic regions, employing around 500 individuals across five states.
Goals of the Acquisition
Janik noted, “This acquisition is a natural progression in our M&A strategy aimed at accelerating growth. By venturing into a wider range of commercial work vehicle operations, we will diversify our revenue streams and mitigate the impact of weather on our overall business.”
Conclusion
This move is likely to solidify Douglas Dynamics’ position in the market and create further opportunities for expansion and innovation in vehicle attachments and equipment.
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