Yanmar Holdings in the U.S has announced an agreement to acquire Minnesota-based, compact equipment manufacturer ASV Holdings Inc., a designer and manufacturer of compact tracked loaders and skid-steer loaders.

It has been reported that Yanmar is to acquire ASV through the mechanism of a statutory merger.

Giuliano Parodi, Executive Officer of Yanmar Holdings, stated, “We believe that the Yanmar Group’s acquisition of ASV will significantly bolster Yanmar’s compact equipment offerings in the loader segment, a product range vital for success in the all-important North American market.”

He added, “With its highly-skilled workforce and quality compact tracked loader and skid-steer loader lineup, ASV is a great fit for both Yanmar’s focus on quality, and our growth and expansion plans in the North American and global markets as it will create a comprehensive and global provider of compact equipment with virtually no overlap in distribution networks.”

U.S trade magazine Equipment Journal says, the transaction is expected to close in the third quarter of 2019, and Yanmar will acquire 100 per cent of ASV’s outstanding shares of common stock for $70.70 million, or $7.05 per share.