OSHKOSH acquisition brings huge opportunities for JBT AeroTech

AmpCart cropped resizedPresidents of JBT AeroTech and OSHKOSH, Vocational chose the International GSE Expo to exclusively chat to journalists about the recent acquisition and the growth plans for the future.

The OSHKOSH $820 million acquisition of JBT AeroTech was successfully completed on 1 August, following the strategic decision announced last year by JBT’s CEO, Brian Deck to separate JBT’s FoodTech and AeroTech business.

OSHKOSH Corporation is a Fortune 500 company US-based industrial technology company, one of the world’s largest manufacturer of fire trucks that comes under its vocational business segment which JBT AeroTech now joins.

Jim Johnson, OSHKOSH Corporation Executive Vice President and President, Vocational, said: ”We made the acquisition because we think JBT AeroTech is a fantastic company, primarily the people and equipment that you see here today but also this is a growing market. The airport infrastructure spending project happening today and the projected growth over the next decade correlates with increased projected passenger traffic, so we’re excited because we purchased a great company in a growing market.”

David Burdakin, President of JBT AeroTech told the press: “We couldn’t be more excited. Just like JBT AeroTech, OSHKOSH designs and builds products for maximum reliability. But it’s more than just the products, the most important thing is the culture, and we have very similar values that are people oriented. One of the key OSHKOSH values is people first and that’s a great foundation and great culture, and we’re already experiencing that benefit.”

JBT AeroTech now has access to a much larger supply chain. “Our buying clout has gone up five times, so it makes large suppliers more interested or more important to our suppliers. It also opens up the door to new suppliers, which is really important right now, as we continue to ramp up to record production,” said Burdakin.

Also on growth opportunities he added: “We’re looking at growth, not just through new products and product technology, but also potentially through acquisitions.”

Other positive synergies to come out of the acquisition centre around the R&D capabilities of both companies with OSHKOSH working on the same technologies as JBT AeroTech in the areas of electrification, sustainability and automation.

One of the innovative solutions on display at the Expo is the new Ampcart towable charging platform which has been designed to help overcome charging infrastructure challenges at airports.

It provides electrical power to stations or parts of the airport where there is no charging infrastructure and allows them to switch their GSE from diesel to electric.

Other exciting technologies Burdakin mentions are JetDock and AmpTeck, a load sharing technology, with 7 already in production. It draws power off of a passenger boarding bridge when it’s not in use thanks to its smart technology, allowing efficient eGSE charging without costly infrastructure and grid upgrades.

“When there is no aircraft at the gate, you can utilize that power for charging stations or the passenger boarding bridge without any additional infrastructure feeding into the airport,” explained Burdakin.

Other technologies and GSE at the Expo included the Ranger Electric Cargo Loader and B250 Electric Pushback Tractor and the Tempest-i Deicer as well as LEKTRO tow vehicles and more.

Chuck Durst, President – Ground Support Equipment, JBT AeroTech, said: “Our presence at the International GSE Expo is about more than just showcasing products. It’s about focusing on the future needs of the aviation industry and sharing our vision for sustainable, efficient and reliable ground operations. Our featured equipment and advanced technology are designed to revolutionise ground support equipment and services and the demands of this industry for many years to come.”

OshKosh to acquire JBT AeroTech for $800m

2023_05_30_AeroTech_news_popup Oshkosh Corporation has entered into a definitive agreement to acquire the AeroTech business from JBT Corporation for $800m.

The acquisition is expected to be finalised in the 3rd quarter of 2023 and completes the strategic decision announced last year by JBT’s CEO, Brian Deck to separate JBT’s FoodTech and AeroTech business.

In the announcement letter to customers, David Burdakin, President of JBT AeroTech, wrote: “Under Oshkosh, our future looks even brighter than ever. There are a lot of synergies between our two companies. Like JBT, Oshkosh is investing heavily in technology for electrification, automation, and telematics. Both companies are committed to providing industry leading customer service throughout the world.”

John Pfeifer, President and Chief Executive Officer of Oshkosh Corporation said: “This transaction supports our ‘Innovate. Serve. Advance.’ business strategy as we enter the attractive air transportation support space with a market-leading portfolio of purpose-built products and comprehensive service offerings. AeroTech meets all the criteria of our M&A priorities, and we believe it will enhance the financial profile of our vocational segment, further strengthening this growing segment and enabling it to move beyond our 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.”

In a press statement released by Oshkosh it explained when adjusted for the present value of expected tax benefits of approximately $80 million, the purchase price is $720m. This represents approximately 9x earnings before interest, taxes, depreciation and amortization (EBITDA) based on the expected 2023 second half run-rate or approximately 7.2x EBITDA including expected run-rate synergies.