France's Manitou to buy U.S firm Gehl

PARIS (Reuters) - French company Manitou (MANP.PA) said on Monday it had agreed to take over U.S. construction equipment maker Gehl GEHL.O in a $331 million deal to raise Manitou's presence in American market.

Manitou said it was offering $30 per Gehl share, representing a 120 percent premium to Gehl's closing share price of $13.66 on the last trading day prior to the announcement of the acquisition.

The French company said the acquisition cost for the Gehl shares not already owned by Manitou amounted to $331 million.

Manitou says it is the world's market leader for rough terrain equipment. The French group said the Gehl deal was in line with its plans to grow in the United States and would be accretive to its earnings per share (EPS) in 2009.

"This transaction is the logical next step in our aim to strengthen our north American operations by joining forces with a player known for its superior products and distribution networks," said Manitou Chief Executive Marcel-Claude Braud.

Manitou said that following completion of the Gehl deal, it would have pro forma sales of more than 1.5 billion euros ($2.15 billion) and would employ over 3,500 staff.

It will finance the acquisition with a 210 million euro term loan facility arranged by French bank Societe Generale

(SOGN.PA).

Manitou shares were up 2.9 percent at 17.55 euros in early morning trade, giving Manitou a market capitalization of roughly 660 million euros.

(Reporting by Sudip Kar-Gupta; Editing by Quentin Bryar)