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Guy Ramsey |
October 18, 2006 • Monday's announcement that JLG Industries had agreed to be purchased by Oshkosh Truck Corporation, Oshkosh, Wis., took everybody by surprise. In fact, William Lasky, JLG chairman, president and CEO was quoted in the Milwaukee Journal Sentinel as saying that JLG was not for sale when it was approached by Oshkosh. "To be honest, I was hoping to find a reason why I didn't think it would be a good fit for JLG. Unfortunately, that didn't last very long when I looked at the success and track record of Oshkosh," Lasky said.
Even more surprising than the actual acquisition was who the buyer was. For years many have speculated that if any company would scoop up the McConnellsburg-based manufacturer of aerial work platforms and telehandllers it would be an organization like Caterpiller, Volvo or Ingersoll Rand • companies long involved with the production of construction equipment. We certainly didn't expect it to be a leading manufacturer of specialized trucks.
So what does all this mean to JLG, and more importantly, buyers of JLG equipment? Oshkosh has a reputation of making quality acquisitions. More importantly they have a track record of not messing with success. It certainly isn't paying $3.2 billion for a company that needs fixing. Apparently, Oshkosh was attracted to JLG because it is an established brand with an extremely attractive future. More importantly, a strong management team is in place in virtually every division of the company.
Describing it as “a good fit for JLG,” Lasky explained that “Oshkosh has a similar philosophy of offering premier products, creating strong market positions and delivering after-sales service and support. For the JLG team, this combination offers additional growth opportunities. For our customers, JLG will become an even stronger partner in their future success.”
Robert G. Bohn, Oshkosh's chairman, president and chief executive officer stated, “We are excited about the addition of this market-leading, global company and expect a smooth integration into the Oshkosh family. At the same time, we expect to realize substantial purchasing and logistical synergies, while benefiting from JLG's already outstanding manufacturing operations. We have a long history of successful acquisitions and expect to build on that history.”
A boost to JLG's supply-side support is a big plus expected to come from their acquisition. In today's economy, buying power is a bigger key to success than ever. Although JLG was a major company, with Oshkosh behind it, JLG is now on more equal footing with Ingersoll Rand or Terex. They can leverage this new buying power to improve margins and improve deliveries • all positives for JLG customers.
So who will lead JLG into its new future with Oshkosh? There is little doubt in my mind that Bill Lasky will leave as soon as the transaction is complete. If Oshkosh wants to send a message to the market that it intends to stay the course and that they truly believe in the heritage and strength of JLG they need to promote from within. I think the only choice is current senior vice president Craig Paylor. Promoted to his current position in August, Paylor's responsibilities include all aspects of the company's marketing, sales, sales support, customer service, service parts and service operations worldwide. He also attended the Harvard School of Business this past summer. At the time these moves were viewed by many, myself included, as part of grooming process to be Lasky's heir apparent. Paylor, more than anyone, is the person best prepared to make this transition as transparent to the customer as possible.
An outsider would be the wrong choice.
