Ground handling vehicle specialist Oshkosh has agreed to acquire JBT’s AeroTech business in an all-cash transaction valued at $800 million.
Providing aviation ground support products, gate equipment and airport services to commercial airlines, AeroTech owns many trusted brands in the air transportation industry with systems in the field that serve approximately 75% of air travellers at US airports and load approximately 70% of the world’s overnight express packages.
Oshkosh’s acquisition of the business will allow the company to boost its presence in the air transportation support market as the sector continues to see increasing air travel demand, commercial airline investments and infrastructure improvement.
“This transaction supports our ‘Innovate, Serve, Advance’ business strategy [whereby] we enter the attractive air transportation support space with a market-leading portfolio of purpose-built products and comprehensive service offerings,“ said John Pfeifer, President and CEO of Oshkosh Corporation.
Noting that AeroTech meets the criteria of his company’s M&A priorities, he added that the acquisition will enable the business to move beyond its goal of $3 billion plus annual revenue with double digit margins. “We look forward to working with the AeroTech team to integrate the business and unlock value for our customers and shareholders,” he said.
Subject to regulatory approval and customer closing conditions, the acquisition is expected to close in Q3, 2023.
