The Manitowoc Company Expands its Direct-to-Customer Footprint in Colorado, Wyoming, and Nebraska

Rhea-AI Summary

The Manitowoc Company (NYSE: MTW) announced the acquisition of certain assets from Honnen Equipment Company's crane rental fleet through its subsidiary, MGX Equipment Services, LLC. This strategic move ends Honnen's dealer agreement with Manitowoc in Colorado, Wyoming, and Nebraska, allowing Manitowoc to expand its direct-to-customer operations in these regions. The acquisition aims to enhance sales, service support, and aftermarket parts availability for diverse customer segments.

Positive

• Acquisition enhances Manitowoc's direct-to-customer footprint in key territories.
• Increased sales and service support capabilities in Colorado, Wyoming, and Nebraska.

Negative

• Potential disruption caused by ending the dealer agreement with Honnen.
• Risks associated with economic and geopolitical factors may impact future performance.

MILWAUKEE--(BUSINESS WIRE)-- The Manitowoc Company, Inc. (NYSE: MTW) (“the Company” or “Manitowoc”), a leading global manufacturer of cranes and lifting solutions, announced today that through its wholly-owned subsidiary, MGX Equipment Services, LLC, it has completed the acquisition of certain assets of the crane rental fleet of Honnen Equipment Company (“Honnen”). Under the agreement Honnen ends its dealer agreement with Manitowoc in Colorado, Wyoming, and Nebraska. The transaction expands Manitowoc’s direct-to-customer footprint in the territory with new sales, used sales, aftermarket parts, and service support to a variety of end market customers.

About The Manitowoc Company, Inc.

The Manitowoc Company, Inc. was founded in 1902 and has over a 120-year tradition of providing high-quality, customer-focused products and support services to its markets. Manitowoc is one of the world's leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, and supports comprehensive product lines of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, and tower cranes under the Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain, and Shuttlelift brand names.

Forward-looking Statements

This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the management of the Company and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as “intends,” “expects,” “anticipates,” “targets,” “estimates,” and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:

• The negative impacts COVID-19 has had and will continue to have on Manitowoc’s business, financial condition, cash flows, results of operations and supply chain, as well as customer demand (including future uncertain impacts);
• actions of competitors;
• changes in raw material and commodity prices;
• changes in economic or industry conditions generally or in the markets served by Manitowoc;
• unanticipated changes in customer demand, including changes in global demand for high-capacity lifting equipment, changes in demand for lifting equipment in emerging economies, and changes in demand for used lifting equipment;
• geo-political events, including the ongoing conflict between Russia and Ukraine, has had and may continue to lead to market disruptions, including significant volatility in commodity prices (including oil and gas), energy prices, inflation, consumer behavior, supply chain, and credit and capital markets, and could result in the impairment of assets and result in higher than expected charges to curtail the Company's operations in Russia;
• failure to comply with regulatory requirements related to the products the Company sells;
• the ability to capitalize on key strategic opportunities and the ability to implement Manitowoc’s long-term initiatives;
• the ability to complete and appropriately integrate acquisitions, strategic alliances, joint ventures, or other significant transactions;
• unanticipated changes in revenues, margins, and costs;
• geographic factors and political and economic conditions and risks;
• the ability to increase operational efficiencies across Manitowoc and to capitalize on those efficiencies;

• risks and factors detailed in Manitowoc's 2021 Annual Report on Form 10-K and its other filings with the United States Securities and Exchange Commission.

Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect the Company's actual results of operations is included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221003005766/en/

Ion Warner

Senior Vice President Marketing & Investor Relations

+1 414-760-4805

Source: The Manitowoc Company, Inc.

FAQ

What recent acquisition did Manitowoc Company announce?

Manitowoc announced the acquisition of certain assets from Honnen Equipment Company's crane rental fleet.

How does the acquisition affect Manitowoc's operations?

The acquisition allows Manitowoc to expand its direct-to-customer operations in Colorado, Wyoming, and Nebraska.

What are the potential risks following Manitowoc's acquisition?

Risks include market disruptions due to economic and geopolitical factors, which may impact future performance.

What company owns MGX Equipment Services, LLC?

MGX Equipment Services, LLC is a wholly-owned subsidiary of The Manitowoc Company.

What are the benefits of the acquisition for Manitowoc?

The acquisition is expected to enhance sales, service support, and aftermarket parts availability for various customers.