Doosan Infracore buys Bobcat for £2.4bn

Korean manufacturer Doosan Infracore has bought Bobcat from Ingersoll Rand for £2.4bn. The deal includes IR’s utility equipment and attachment business and is the largest overseas takeover ever made by a Korean firm.

Doosan said its objectives are to enhance its product portfolio, strengthen its global manufacturing and sales networks and to secure world-class technologies and brand names.

The move sees Doosan acquire a range of telehandlers, mini-excavators and attachments as well as the skid steer loaders with which the Bobcat name is synonymous. While some rationalisation is inevitable on areas like mini excavators, the fit between two companies is good and Doosan said it intends to run the acquired businesses with the current management and employees.

Included in the deal are 16 factories across six countries and a business that generated £1.6bn in sales 2006 making a profit of £183m. Post takeover, Doosan will have 20 manufacturing plants with sales of £3.6bn - making it the seventh largest plant manufacturer in the world.

Doosan was keen to secure Bobcat’s world-class talent and R&D capability and now has market access through Bobcat’s 2,700 US and European dealers boosting its total to over 3,700 worldwide.

Doosan Infracore vice chairman Yongmaan Park said: "The businesses we are acquiring have outstanding management personnel and engineers..." "We therefore plan to maintain the current management to best utilise their expertise and skills in an effort to evolve Doosan Infracore into a truly global company."

By 2010 Park wants Doosan to be one of the top five of global plant manufacturers. Recently Doosan has bought a Chinese wheel loader manufacturer and an American company specialising in environmentally-friendly engine technology.