JBT AeroTech's products include the Halvorsen aircraft loader. (JBT AeroTech)
US-based truck manufacturer Oshkosh Corporation plans to expand its offering by acquiring JBT Corporation's AeroTech aircraft ground equipment business for USD800 million in cash, the buyer announced on 30 May.
Oshkosh said combining its portfolio with AeroTech's “will create significant opportunities for product innovation”. JBT said it is selling AeroTech to focus on providing equipment to the food and beverage industry.
AeroTech serves commercial and military customers, with defence accounting for about 10% of its business, an Oshkosh spokesperson told Janes. AeroTech's defence products include aircraft tow tractors, cargo loaders, de-icer trucks, and hangar air and power systems. Its customers include the US Air Force and US Navy, and its main facilities are in Orlando, Florida, and Ogden, Utah.
The acquisition is expected to close in the third quarter (Q3) of 2023 after receiving regulatory approval. Oshkosh said it expects to realise about USD80 million in tax benefits from the transaction, which will reduce the cost of its purchase to about USD720 million. After the acquisition closes, AeroTech will become part of Oshkosh's Vocational segment.
Oshkosh president and CEO John Pfeifer told analysts that AeroTech operates in an “attractive” market that is adjacent to Oshkosh's core business, and that the acquisition could pave the way for additional transactions “in this space”.
The announcement follows Oshkosh's purchase of vehicle engineering business Pratt Miller for USD115 million in 2021. Pratt Miller became part of Oshkosh Defense.
This article, originally published on 31 May 2023, has been updated with new information.
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