NEWS FOR IMMEDIATE RELEASE
THE MANITOWOC COMPANY ACQUIRES
MARINETTE MARINE CORPORATION
Acquisition Forms the Largest and Most Cost-Effective
Shipbuilding and Repair Organization on the U.S. Great Lakes
MANITOWOC, WI - October 20, 2000 - The Manitowoc Company, Inc.,
(NYSE: MTW), a diversified manufacturing company with market-
leading operations in foodservice equipment, lattice-boom cranes,
and marine services, announced today that it has signed an
agreement to purchase the stock of Marinette Marine Corporation.
Located in Marinette, Wisconsin, just across Green Bay from
Manitowoc's Bay Shipbuilding facility, Marinette Marine operates
one of the largest shipyards on the U.S. Great Lakes. Marinette
was acquired for approximately $48.0 million as part of an all-
cash transaction, with the final price subject to certain closing
balance sheet adjustments. The transaction, which is expected to
close within 30 days pending regulatory approvals, will be
financed using Manitowoc's existing credit facility.
"Marinette Marine is one of the most efficient builders of mid-
sized commercial, research, and military vessels in the country
and will be a key strategic fit with the industry-leading
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inspection, maintenance, repair, and new-construction facilities
that comprise Manitowoc Marine Group," stated Terry D. Growcock,
Manitowoc's president and chief executive officer. "Together,
the combined organization forms a combination that will not only
have a significant presence on the Great Lakes, but will be one
of the most cost-effective shipbuilding and repair organizations
in the entire United States.
"The acquisition, which we expect will be accretive to our 2001
outlook, should not only give us the leading position in building
mid-sized vessels for the U.S. Government, it will enhance our
ability to serve the Great Lakes ship-repair market as well as
providing the engineering strength, operational depth, and
critical mass to pursue additional projects," added Growcock.
"For more than 50 years, our two organizations have set the
standard for quality and service on the Great Lakes and in
shipbuilding for the U.S. Government," said Dan Gulling,
president and chief executive officer of Marinette Marine. "This
historic combination allows us to offer our existing customers
unparalleled capabilities and opens potential avenues for new
shipbuilding opportunities, as well."
A privately held corporation, Marinette has revenues of
approximately $100 million with EBITDA margins approaching 10
percent. The company is currently under contract to build six
ocean-going buoy tenders for the United States Coast Guard, as
well as two 269-foot APL barracks barges for the U.S. Navy.
Marinette Marine presently employs more than 800 individuals and
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features complete in-house capabilities for all shipbuilding
disciplines.
"This acquisition is a great addition to our present operations,"
explained Tom Byrne, the recently appointed president and general
manager of Manitowoc's Marine Group. "Marinette's close
proximity to our Sturgeon Bay yard should allow us to easily
balance work across the two facilities. In addition, Marinette,
which is well known for its highly efficient production line
approach to shipbuilding, will enable us to serve a broader range
of customers with the best array of facilities, capabilities, and
expertise of any Great Lakes shipyard."
The Manitowoc Company will host a conference call today, October
20, at 10:00 am Eastern Standard Time. The call will also be
broadcast live via the Internet at Manitowoc's web site:
http://www.manitowoc.com.
The Manitowoc Company, Inc. is a leading manufacturer of ice-
cube machines, ice/beverage dispensers, and commercial
refrigeration equipment for the foodservice industry. It is also
a leading producer of lattice-boom cranes, boom trucks, and
related products for the construction industry, and specializes
in ship repair, conversion, and new-construction services for the
Great Lakes maritime industry.
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Any statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and involve risks and
uncertainties. Potential factors could cause actual results to
differ materially from those expressed or implied by such
statements. These statements include, but are not limited to,
those relating to the success of acquisitions, prospects for the
company's marine operations, revenue growth of the company and/or
its business segments, achieving market leadership in the
company's business segments, and future market strength for the
company's business segments. Information on the potential
factors that could affect the company's actual results of
operations are included in its filings with the Securities and
Exchange Commission, including but not limited to its Annual
Report on Form 10-K for the fiscal year ended December 31, 1999.
For further information:
Glen E. Tellock
Senior Vice President & Chief Financial Officer
Telephone: (920) 683-8122
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