0000897069-01-500453.txt : 20011009
0000897069-01-500453.hdr.sgml : 20011009
ACCESSION NUMBER: 0000897069-01-500453
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20010927
ITEM INFORMATION: Financial statements and exhibits
ITEM INFORMATION:
FILED AS OF DATE: 20010927
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: GEHL CO
CENTRAL INDEX KEY: 0000856386
STANDARD INDUSTRIAL CLASSIFICATION: FARM MACHINERY & EQUIPMENT [3523]
IRS NUMBER: 390300430
STATE OF INCORPORATION: WI
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-18110
FILM NUMBER: 1746655
BUSINESS ADDRESS:
STREET 1: 143 WATER STREET
CITY: WEST BEND
STATE: WI
ZIP: 53095
BUSINESS PHONE: 4143349461
MAIL ADDRESS:
STREET 1: 143 WATER STREET
CITY: WEST BEND
STATE: WI
ZIP: 53095
8-K
1
slp93a.txt
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
-----------------------
Date of Report
(Date of earliest
event reported): September 27, 2001
Gehl Company
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Wisconsin 0-18110 39-0300430
--------------- ------------- ----------
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
143 Water Street, West Bend, Wisconsin 53095
--------------------------------------------------------
(Address of principal executive offices, including zip code)
(262) 334-9461
(Registrant's telephone number)
Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits. The following exhibit is being filed herewith:
(99) Press Release of Gehl Company, dated
September 27, 2001.
Item 9. Regulation FD Disclosure.
On September 27, 2001, Gehl Company (the "Company") issued a press
release announcing the conclusion of the Company's strategic review process,
certain plant rationalization initiatives and an open market stock repurchase
program. A copy of the press release is attached as Exhibit 99 to this Current
Report on Form 8-K (this "Current Report").
Certain matters disclosed in this Current Report (including in the
exhibit hereto) are "forward-looking statements" intended to qualify for the
safe harbor from liability established by the Private Securities Litigation
Reform Act of 1995. All statements other than statements of historical fact,
including statements regarding the review of the Company's strategic
alternatives and the cost of and cost-savings associated with the Company's
rationalization initiatives, are forward-looking statements. These
forward-looking statements are not guarantees of future performance and are
subject to certain risks, uncertainties, assumptions and other factors, some of
which are beyond the Company's control, that could cause actual results to
differ materially from those anticipated as of September 27, 2001. Factors that
could cause such a variance include, but are not limited to, unanticipated
changes in general economic and capital market conditions, the Company's ability
to implement successfully its strategic initiatives and plant rationalization
actions, market acceptance of newly introduced products, the cyclical nature of
the Company's business, the Company's and its customers' access to credit,
competitive pricing, product initiatives and other actions taken by competitors,
disruptions in production capacity, excess inventory levels, the effect of
changes in laws and regulations (including government subsidies and
international trade regulations), technological difficulties, changes in
currency exchange rates, changes in environmental laws, and employee and labor
relations. Shareholders, potential investors, and other readers are urged to
consider these factors in evaluating the forward-looking statements and are
cautioned not to place undue reliance on such forward-looking statements. The
forward-looking statements included in this Current Report (including in the
exhibit hereto) are only made as of September 27, 2001, and the Company
undertakes no obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GEHL COMPANY
Date: September 27, 2001 By: /s/ Kenneth P. Hahn
--------------------------------------
Kenneth P. Hahn
Vice President of Finance and Treasurer
-2-
GEHL COMPANY
Exhibit Index to Current Report on Form 8-K
Dated September 27, 2001
Exhibit
Number
(99) Press Release of Gehl Company, dated September 27, 2001.
-3-
EX-99
3
slp93b.txt
PRESS RELEASE
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Gehl Company Tel: 262/334-9461
143 Water Street Fax: 262/334-6603
CONTACT: P.O. Box 179 http://www.gehl.com
Kenneth Hahn (investors) West Bend, WI 53095-0179
Vice President, Finance & Treasurer USA
262-334-6632
News Release
Drew Brown/Andrew Cole (media)
Citigate Sard Verbinnen
212-687-8080
GEHL COMPANY BOARD OF DIRECTORS
CONCLUDES STRATEGIC REVIEW PROCESS
Unanimously Determines That Executing the Company's Strategic Plan
Will Create Most Value For Shareholders
Company to Restructure to Increase Profitability,
Including Extensive Manufacturing Rationalization
Company Announces Open Market Repurchase of up to 500,000 Shares
-----------------------------------------------
WEST BEND, WI, September 27, 2001 - Gehl Company (Nasdaq: GEHL), a
manufacturer of compact construction and agricultural equipment, today announced
that after a thorough review of a full range of strategic alternatives to
maximize shareholder value, the Board of Directors has unanimously decided to
conclude the strategic review process. In light of current economic conditions
and the inadequate and conditional nature of the proposals received for the
Company, the Board determined that a sale of the Company at the present time is
not in the best interests of the shareholders and has directed management to
continue to execute the Company's previously announced strategic plan. To
increase the Company's long-term profitability and enhance value for
shareholders, the Board also approved plans to streamline operations and
commence a significant share repurchase program.
"After thoroughly reviewing all potential alternatives, with the
assistance of our financial advisors, Robert W. Baird & Co, including
acquisitions, strategic alliances, divestitures, a leveraged buyout,
recapitalization and a sale of the Company, the Board unanimously concluded that
it is in the best interests of all shareholders to continue to execute the
long-term strategic plan outlined by the Company in February 2001," said William
D. Gehl, Chairman, President and Chief Executive Officer. "With the Company's
established track record, strong array of
products, and effective cross-selling distribution channels, the Board strongly
believes that Gehl can execute its business plan and deliver value to customers
and shareholders both in today's challenging market and over the longer-term."
Commenting on the Board's review of acquisition offers received by the
Company during the process, Mr. Gehl said, "We conducted an open and fair
process, considering carefully each of the acquisition offers received for the
Company, including a proposal from CIC Equity Partners, Ltd. and Newcastle
Partners, L.P. The Board unanimously concluded that all of the offers were
either not at adequate price levels or highly conditional, or both. Given the
current state of the economy and the resulting uncertainty, it is clear that a
sale of the Company now would not be in the best interests of our shareholders."
Commenting specifically on CIC/Newcastle's proposal, Mr. Gehl said,
"Although CIC/Newcastle was given the same opportunity as other bidders in the
process, their proposed price had been rejected previously by the Board.
Further, the group did not have committed financing in place to complete a
possible transaction. The actions of the CIC/Newcastle group during the process
confirmed our belief that the group was never a serious buyer, but was only
interested in provoking a change-of-control transaction as a means of advancing
its own short-term interests."
Mr. Gehl continued, "We operate in cyclical industries and the timing of
the process relative to the economic cycle, particularly in light of recent
events and uncertainty in the global economy, did not, in the Board's judgment,
work in the Company's favor. Although some of our shareholders clearly believed
that undertaking a strategic review process was appropriate at the time, a
belief the Board took seriously and acted upon, the process was, in the Board's
view, affected by current and expected future economic conditions, such that
continuing to execute the Company's strategic plan clearly represents the best
alternative for our shareholders. The macro-economic climate and financial
markets are not conducive to receiving appropriate strategic valuations for the
business from potential acquirors."
Consistent with its fiduciary obligations, the Gehl Board will continue to
evaluate the Company's strategic alternatives from time to time as appropriate.
Plant Rationalization Initiatives
---------------------------------
The Company also announced that the Board adopted several major plant
rationalization initiatives to bolster the Company's profitability by
streamlining operations. Under these initiatives, Gehl will close its
manufacturing facility in Lebanon, Pennsylvania and transfer
production to other locations. Gehl will also transfer the manufacturing of its
Mustang line of skid steer loaders from its existing facility in Owatonna,
Minnesota to its recently expanded skid steer facility in Madison, South Dakota.
Mustang sales and marketing personnel will remain headquartered in Owatonna as
will a transitionary engineering group.
The manufacturing consolidations are expected to commence immediately and
be substantially completed in 2002. The streamlining of the manufacturing
operations will result in a net workforce reduction of approximately 10%, or 100
employees. These actions are expected to produce pre-tax cost savings of
approximately $1.0 to $1.2 million in 2002 and at least $4.0 to $4.5 million in
2003 and each year thereafter. As a result of these initiatives, the Company
anticipates that it will ultimately incur approximately $5.5 million to $6.5
million of total, pre-tax restructuring costs, of which approximately $4.2
million to $4.7 million is expected to be incurred during the remainder of 2001.
Commenting on the rationalization initiatives, Mr. Gehl said "The
deepening global economic slowdown continues to affect the construction
equipment market, necessitating decisive steps to ensure the long-term strength
of the Company. These near-term decisions on streamlining the business, while
difficult to make, will contribute significantly to the Company's long-term
growth prospects."
Repurchase Program
------------------
The Company also announced that its Board of Directors has authorized the
repurchase from time to time of up to 500,000 shares (or approximately 9%) of
the Company's common stock currently outstanding. The repurchases may occur in
the open market or through privately negotiated transactions. The timing and
amount of the repurchases will be at the Company's discretion and will be based
on market conditions and other corporate considerations. Any repurchases will be
funded with available cash from operations and through borrowings under the
Company's existing credit facility.
About Gehl Company
------------------
Gehl Company (Nasdaq: GEHL) is a leading manufacturer of equipment used
worldwide in construction and agricultural markets. Founded in 1859, Gehl is
headquartered in West Bend, WI, with manufacturing facilities in West Bend, WI;
Lebanon, PA; Madison and Yankton, SD; and Owatonna, MN. The Company markets its
products under the Gehl(R) and Mustang(R) brand names. Mustang product
information is available at www.mustangmfg.com. Information
regarding the Company's attachments business, CE Attachments, is available at
www.ceattach.com. Gehl Company information is available at www.gehl.com or
contact: Gehl Company, 143 Water Street, West Bend, WI 53095 (telephone:
262-334-9461).
Forward Looking Statements
--------------------------
Certain matters discussed in this press release are "forward-looking
statements" intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. All statements other
than statements of historical fact, including statements regarding the review of
the Company's strategic alternatives and the cost of and cost-savings associated
with the Company's rationalization initiatives, are forward-looking statements.
These forwarding-looking statements are not guarantees of future performance and
are subject to certain risks, uncertainties, assumptions and other factors, some
of which are beyond the Company's control, that could cause actual results to
differ materially from those anticipated as of the date of this press release.
Factors that could cause such a variance include, but are not limited to,
unanticipated changes in general economic and capital market conditions, the
Company's ability to implement successfully its strategic initiatives and plant
rationalization actions, market acceptance of newly introduced products, the
cyclical nature of the Company's business, the Company's and its customers'
access to credit, competitive pricing, product initiatives and other actions
taken by competitors, disruptions in production capacity, excess inventory
levels, the effect of changes in laws and regulations (including government
subsidies and international trade regulations), technological difficulties,
changes in currency exchange rates, changes in environmental laws, and employee
and labor relations. Shareholders, potential investors, and other readers are
urged to consider these factors in evaluating the forward-looking statements and
are cautioned not to place undue reliance on such forward-looking statements.
The forward-looking statements included in this release are only made as of the
date of this release, and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events or
circumstances.
* * *