Milwaukee-based Douglas Dynamics Inc. has completed its previously announced $206 million acquisition of substantially all the assets of Kings Park, New York-based Dejana Truck & Utility Equipment Inc.
The companies and the family trust that owns Dejana last week were granted an early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction was originally scheduled to close in the third quarter.
Douglas manufactures vehicle attachments and equipment, including snow plows, at three U.S. facilities for global distribution. It has had a relationship with Dejana for more than 25 years. Douglas will fund the acquisition with cash, asset based lending revolver draw and an expansion of its existing term loan by $130 million. The deal included a potential $26 million in performance earn out payments, based on the financial performance of Dejana through 2018.
Dejana up fits Class 4-6 trucks and commercial work vehicles, and also manufactures van and truck storage solutions and cable pulling equipment for trucks. A family-owned company founded in 1957, it had grown to $145 million in revenue over the trailing 12 months ending March 31. It has seven manufacturing and up-fit facilities and employs about 500 people in five states.
Douglas has about has 1,100 full-time employees across North America, about 300 of whom are in Milwaukee. Douglas said the acquisition is advantageous because it diversifies the company’s offerings and reduces its weather-driven risk exposure. It is expected to be accretive to earnings in 2017.