LAS VEGAS, Oct. 20, 2009 (GLOBE NEWSWIRE) -- Most mergers and acquisitions are buoyed with optimism and hope that the transaction brings added prosperity sometime in the future. Few appear to have the near instant synergy that an announcement in the heavy equipment industry today seems to indicate.
Today's announcement by AmeraMex International, Inc. (Pink Sheets:AMMX), a provider of heavy equipment to infrastructure construction, stevedoring and mining companies, that the company has signed a letter of intent to merge private Cromer Equipment, a company specializing in forklifts and materials handling equipment, into AmeraMex International with AmeraMex International, Inc. being the company name, perhaps defines a 1 + 1 = 3 scenario. By merging, the former AmeraMex will be able to continue its lucrative international expansion, leaving domestic operations to its experienced new acquisition. Moreover, the company's international revenue efforts will be enhanced through a greater product line that comes as a result of the merger.
With the merger expected to be completed in early 2010, the public will have to wait for more details as to this synergy beyond the release's declaration that it will produce pro forma revenue of $38.5 million, EBITDA (earnings before interest, tax, depreciation and amortization) of $650,000 for calendar 2008, and a combined 60 employees.
On paper, the merger certainly seems like a common sense blend of sympathetic companies, management, products and more.
A report focusing on AmeraMex International Inc. (Pink Sheets:AMMX) and of interest to investors of international heavy equipment companies CNH Global N.V. (NYSE:CNH), H&E Equipment Services, Inc. (Nasdaq:HEES), Caterpillar (NYSE:CAT), and Terex Corporation (NYSE:TEX) has been published at:
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AmeraMex International sells, leases, and rents heavy equipment to companies within four industries: construction (light and infrastructure), shipping and mining. AmeraMex's largest product line is specialized container handling equipment that enables stevedoring companies to quickly and efficiently load and offload container and general freight ships dockside. AmeraMex services customers on five continents.
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