Target Information

JLG Industries, Inc., a prominent business under Oshkosh Corporation [NYSE:OSK], is recognized as a leading global manufacturer of mobile elevating work platforms (MEWPs) and telehandlers. Recently, the company has expanded its offerings through the acquisition of AUSA, a manufacturer known for its wheeled dumpers, rough terrain forklifts, and compact telehandlers.

This strategic acquisition enables JLG to provide enhanced aftermarket support to AUSA equipment owners across North America, heralding a new era of seamless access to essential parts through the JLG® Online Express eCommerce platform.

Industry Overview

The construction equipment industry in North America has seen significant growth over recent years, driven largely by ongoing urban development and infrastructure projects. With a focus on sustainability and efficiency, the demand for advanced machinery such as MEWPs and forklifts continues to rise.

As construction companies increasingly lean towards automated and hydraulically powered equipment, the need for reliable aftermarket support has become vital for reducing equipment downtime. This has positioned companies like JLG to capitalize on the shifting market landscape.

The North American market is particularly advantageous due to its well-established supply chains and comprehensive distribution networks, which facilitate efficient provisioning of parts and services to customers. As such, companies that can streamline their parts access and offer competitive pricing are likely to gain substantial market share.

JLG’s commitment to integrating AUSA’s services within its existing framework illustrates a proactive approach to meeting customer needs and enhancing service efficiency in this dynamic industry.

Rationale Behind the Deal

The acquisition of AUSA aligns with JLG’s strategic objectives to broaden its product portfolio and enhance customer service. By integrating AUSA’s offerings into the JLG® Online Express platform, JLG aims to improve customer accessibility to parts, thereby minimizing downtime and maximizing productivity.

This venture not only fortifies JLG’s market position but also opens new avenues for growth by catering to AUSA customers with localized support and increased access to parts.

Investor Information

Oshkosh Corporation, JLG’s parent company, is a leader in the manufacturing of mission-critical equipment, employing over 18,000 team members globally. With a commitment to innovation and quality, Oshkosh supports a variety of equipment brands that serve multiple markets, including construction, defense, and transportation.

The corporation’s extensive resources and experience provide JLG with the strength needed to successfully execute its strategic initiatives, including the integration of AUSA into its portfolio.

View of Dealert

The integration of AUSA parts into JLG’s Online Express platform represents a significant advancement in aftermarket support, emphasizing increased accessibility and efficiency for customers. This strategic move is likely to foster customer loyalty and attract new users by simplifying the parts ordering process.

Given the critical role that easy access to parts plays in maintaining machinery uptime, this initiative exemplifies JLG’s dedication to enhancing service delivery. Importantly, the competitive pricing and next-day delivery options provided through the platform can distinguish JLG from its competitors in a crowded marketplace.

In light of the ongoing growth trends within the construction industry and the heightened demand for efficient equipment, this acquisition could be viewed as a sound investment. By leveraging its robust distribution network, JLG is well-positioned to capture market share and achieve profitable growth.

Overall, JLG’s strategic alignment with AUSA, combined with its enhanced service offerings, indicates a promising outlook for both companies as they work together to meet evolving customer needs in North America.

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