10 Utility Contractor | September 2007 Back in May, Ingersoll Rand announced plans to explore what it called cstrategic alternatives d for Bobcat Company and its other con- struction-related businesses, includ- ing the Utility Equipment and Attachments businesses. On July 30, a final decision was made to sell Bobcat to Doosan Infracore, a lead- ing Korean machine manufacturer. Doosan started acquiring iron when it took over Korea Heavy Industries (now Doosan Heavy Industrial & Construction) in 2001 and Daewoo Heavy Industries & Machinery (now Doosan Infracore) in 2005.
With Bobcat and Ingersoll Rand 9s other equipment businesses, the company becomes a force to reckon with in the North American market. Bobcat also announced that it had also signed a long-term strategic agreement with Korean manufactur- er Daedong Industrial Co. Ltd., to produce a line of Bobcat-branded compact utility tractors.
Oddly enough, the two announcements are unrelated 3 except that both involve South Korean equipment companies. With the purchases, Doosan Infracore takes a position as one of the top seven global construction equipment companies in the world. And with Bobcat, it now has one of the best distribution chan- nels in North America for small construction, landscape and rental equipment.
cThe sale of ... more. less.
Bobcat, Utility Equipment and Attachments repre- sents the last major action to trans- form our business portfolio to repo- sition Ingersoll Rand as a diversi- fied industrial company, d said Herbert L. Henkel, chairman, presi- dent and CEO at Ingersoll Rand. cWe remain focused on driving growth and creating shareholder value through three strategic plat- forms serving global climate con- trol, industrial and security mar- kets.<br><br> I am confident that these busi- nesses will deliver consistent finan- cial performance over the long term and across all phases of the eco- nomic cycle. d This sale also includes a slew of manufacturing facilities that span from Gwinner and Bismarck, N.D., to Wujiang, China, and Slane, Ireland. These businesses employ approximately 5,700 people worldwide. One day after the announcement of the sale (July 31), Bobcat also revealed its new tractor partner- ship with Daedong Industrial.<br><br> According to Bobcat, it 9s a move intended to expand its No. 1 mar- ket position in the compact equip- ment marketplace. cThis alliance brings together the strengths of two respected and rec- ognized companies, d said David Rowles, president of Bobcat Americas.<br><br> cBy combining the Bobcat global brand, dealer network and service with Daedong 9s commitment to compact tractor design and tech- nology, we can provide our cus- tomers with the quality compact equipment experience they 9ve come to expect from Bobcat. We plan to start offering compact utility tractors to customers later this year. d The Bobcat project team worked with a team from Daedong to create a compact utility tractor that meets Bobcat-brand expectations. Always ahead of the game, Bobcat already offers its customers five three-point hitch implements: an angle blade, auger, box blade, mower and tine rake.<br><br> Soon it will offer them an actual Bobcat utility tractor. Bobcat Sold to Korean Manufacturer Doosan GROUNDBREAKING NEWS With the purchase of Bobcat, Doosan is now one of the top seven global construction equipment companies in the world. It also now has access to one of the best distribution channels for small equipment in North America.<br><br> GROUNDBREAKING NEWS Volvo Construction Equipment North America (Volvo CE) has com- pleted the merger of its New Jersey and eastern Pennsylvania dealer, Penn- Jersey Machinery, and two Volvo Construction Equipment & Services (VCES) dealers in Pennsylvania and New Jersey. The combined dealerships will conduct business as Penn-Jersey Machinery. The acquisition of the road machin- ery division of Ingersoll Rand in April 2007 by Volvo CE included 20 Ingersoll Rand company stores locat- ed in 11 states.<br><br> The former Ingersoll Rand Equipment & Services locations began doing business as Volvo Construction Equipment & Services on July 1. The merger of the VCES branch- es in Philadelphia, Pennsylvania, and Branchburg, New Jersey, with Penn-Jersey was effective Aug. 1, and expands the number of loca- tions presently operated by Penn- Jersey to six, strengthening the company 9s position in its territory.<br><br> Management of the newly-merged stores will remain in place to con- tinue supporting their local cus- tomers 9 needs. Current VCES sales negotia- tions, warranties, and sales agree- ments will be honored by Penn- Jersey and complete inventories of products and parts will continue to be available. Penn-Jersey has complete parts and service facili- ties to satisfy all of the road machinery service needs.<br><br> cThe merger of the two stores with our operations is expected to be seamless and uninterrupted, d said Walter Joachim, president of Penn-Jersey Machinery. cWe wel- come the customers and staffs of each branch to our dealership. They will receive the very best that Volvo Construction and Penn-Jersey have to offer. d 12 Utility Contractor | September 2007 Volvo's New Jersey and Pennsylvania Dealers Merge The merger of the VCES branches expands the number of locations presently operated by Penn-Jersey to six, strengthening the company's position in its territory.<br><br> Volvo & NER to Host Equipment Identification School On Oct. 30, Volvo Construction Equipment and the National Equipment Register (NER) will host a one-day seminar for law enforcement officers on Volvo Equipment identification techniques. The seminar will take place at Volvo 9s main U.S.<br><br> manufacturing plant in Asheville, N.C. The day will include a tour of the plant, where the officers will have an oppor- tunity to examine machines in assembly, and operate the latest Volvo equipment at the Volvo Demo Center. An in-class session and round-table discussion will follow the tour and focus on general equipment iden- tification, investigative training, as well overview of equipment theft as a nationwide problem.<br><br> The event is a part of major effort by Volvo Construction Equipment and the NER to educate and support the law enforce- ment community in com- bating the problem of equipment theft. Numerous officers from East and West coast states have already registered for the event. To register, please contact NER at info@NERusa.com, or via telephone at (866) 663- 7872.<br><br> Spaces are limited. United Rentals Acquired by Cerberus Capital Management United Rentals announced on July 23 that it had signed a definitive merger agreement to be acquired by affiliates of Cerberus Capital Management in a transaction valued at approximately $6.6 billion, including the assumption of approx- imately $2.6 billion in debt obliga- tions. Established in 1992, Cerberus Capital Management, L.P.<br><br> is one of the world 9s leading private invest- ment firms, with approximately $25 billion under management in funds and accounts. Under the terms of the agree- ment, United Rentals stockholders will receive $34.50 in cash for each share of United Rentals common stock that they hold. The purchase price per share represents a 25 per- cent premium over United Rentals 9 closing share price of $27.55 prior to the company 9s announcement on April 10 that it had commenced a process to explore a broad range of strategic alternatives.<br><br> cWe 9re pleased that our strate- gic alternatives process has resulted in this favorable agree- ment for our shareholders, d said Bradley S. Jacobs, chairman of United Rentals. cThis transac- tion is a credit to the thousands of United Rentals employees who have created unmatched value in our industry.<br><br> A decade ago we started United Rentals with little more than a concept and achieved industry leader- ship in just 13 months. Today we remain the preeminent equipment rental company in the world. d Michael J. Kneeland, CEO of United Rentals, said, cWe will continue to focus intensely on customer service and employee satisfaction.<br><br> Cerberus is a firm that shares our deep respect for operational excellence. They have an impressive track record of investing in industry leaders and working constructively with man- agement teams to accelerate prof- itability and growth. d The board of directors of United Rentals has approved the merger agreement and has rec- ommended the approval of the transaction by United Rentals stockholders. Completion of the transaction is subject to customary closing conditions, including approval of the transaction by United Rentals 9 stockholders and regula- tory review.<br><br> GROUNDBREAKING NEWS September 2007 | Utility Contractor 13 GROUNDBREAKING NEWS CONTECH Appoints Keating President and COO CONTECH Construction Products Inc. r e c e n t l y announced that Ron C. Keating will be appointed president and chief operat- ing officer of CONTECH Construction Products Inc., effective Aug.<br><br> 15. Keating will assume responsibility for all report- ing units including day-to-day oper- ations of the company. Keating comes to CONTECH from Kennametal Inc.<br><br> where he was president of its $1.7 billion Metalworking Solutions and Services Group, in addition to holding other leadership posi- tions. He also served as a vice president and general manager at Ingersoll-Rand. He holds a bache- lor 9s degree in industrial distribu- tion from Texas A&M University, and an MBA from Northwestern University 9s Kellogg School of Management.<br><br> Owens Named IronPlanet Chairman and CEO IronPlanet, a leading online mar- ketplace for used heavy equipment, has named Gregory J. Owens chair- man and CEO of the organization, effective Aug. 1.<br><br> Owens will also join the company 9s Board of Directors on that date. Owens most recently served as managing direc- tor of Red Zone Capital, a Washington, D.C. Private Equity Group.<br><br> Prior to that, he was chair- man and chief executive officer of Manugistics Group Inc., a leading public supply chain management software company. Owens joins IronPlanet with extensive experience and proven results in revenue growth and sup- ply chain business management. He has served as global managing partner supply chain management at Accenture, where he was a founding member of their supply chain group.<br><br> Owens has served, or presently serves, on several out- side boards including Serena Software Inc., S1 Corp. and SecureWorks Inc. Thompson Pump Obtains ISO 9001:2000 Quality Certification Thompson Pump & Mfg.<br><br> Co. Inc. recently announced that it has achieved ISO 9001:2000 qual- ity certification for its Port Orange, Fla., manufacturing facil- ity.<br><br> Thompson Pump is one of only a very few pump companies to have obtained the certification. cThrough total employee involvement, Thompson Pump 9s systems, procedures, documenta- tion and manufacturing are all aligned to provide the highest qual- ity products and services to our customers, d said company presi- dent Bill Thompson. cThis recogni- tion communicates to our cus- tomers, worldwide, that they are working with an organization that prides itself on incorporating the very best practices and processes in the industry to consistently meet or exceed their needs.<br><br> The globally recognized certifica- tion was granted following inde- pendent testing and assessment of the company 9s quality management systems and manufacturing capa- bilities. ISO 9001:2000 recognizes companies that meet strict criteria for manufacturing standards and is considered the highest standard for quality assurance. To achieve certi- fication, companies must have a comprehensive quality manage- ment system that addresses all areas of its operation.<br><br> cCustomer satisfaction has always been a foundation of our corporate values and our highest priority, d Thompson added. cAchieving ISO 9001:2000 certi- fication is further evidence of the unwavering commitment Thompson Pump has made toward providing customers with products and services in which they can have complete confi- dence when performing pumping applications, today and in the future. d 14 Utility Contractor | September 2007 Keating Thompson Pump is one of only a very few pump companies to have obtained ISO 9001:2000 certification. Cat Offers Computer- Based Training for Mini Excavators Caterpillar introduces a new computer-based Mini Hydraulic Excavator Operator Training Course aimed at helping owners of the versatile compact machines prepare and retain a competent operator fleet and protect their investment.<br><br> The program covers the fundamentals of daily mainte- nance, machine controls, safe operating practices, and operating techniques for Caterpillar mini hydraulic excavators weighing up to 6 metric tons. cFinding and retaining quali- fied operators is one of the toughest challenges faced by contractors today, d says Dan Bruch, North American General Construction Training Manager. cThe pro- gram incor- p o r a t e s video, sound and a series of knowledge checks to ensure com- prehension.<br><br> We wanted an informa- tive program that would engage the student, even if the indi- vidual isn 9t accustomed to spending a time at a computer screen. d The Caterpillar Mini Hydraulic Excavator Operator Training Course will contain both English and Spanish narration and text. A computer with a DVD-ROM drive is required. The course is available from any Caterpillar dealer.<br><br> For more information, customers should contact their local Caterpillar dealer or visit the Cat Web site at www.cat.com. GROUNDBREAKING NEWS September 2007 | Utility Contractor 15