So, who's buying whom, today??? - acquisitions and mergers in the engine and equipment industry

In the early 1900s, the head of the U.S. Patent Office suggested that the patent office be closed because pretty much everything that could or would be invented, had already been dreamed up.

Okay fine.

Some of that attitude was around the engine and equipment markets late last year and early this season. Yep, no big deals left in these markets. Everybody that wanted to buy somebody had pretty much already bought them. And after some of the megadeals the last few years, it seemed to make a little sense.

Okay fine.

Turns out it wasn't time for the merger, acquisition and joint venture crowd to close up shop quite yet.

While it took the industry a little while to shake off the combined effects of a good 1996, too much Christmas eggnog, and an unexpectedly strong start to 1997, when they did, major wowsers!

In no particular order:

Dana & Clark-Hurth Components: Simply the biggest acquisition in acquisition-happy Dana's history. Another step towards Tier 1 supplier status for virtually anything that moves. Spicer Global.

Detroit Diesel Corp.: First DDC reorganizes into engine-based product "platforms," a mostly automotive concept. Then they go out and do an engine joint venture for automotive diesels with Chrysler. Mostly for export according to the PR, but is there much doubt there's some sort of North American consumer diesel program in the future, beyond pickup tracks? Most of that story is yet to be written.

Ford Heavy Truck To Freightliner: Ka-BOOM. Talk about your basic on-highway earthquake. Can you spell truck g-i-a-n-t? Maybe as interesting as Freightliner now having 30-plus percent marketshare in U.S. heavy trucks is, what the rest will do? The reaction to this action oughta keep the rumor mill humming for a loooong time.

The Farm Report: Is everyone buying everyone in the ag business? AGCO makes major purchases in Germany (Fendt) and South America (Deutz Argentina) and is on the prowl for more. Cat does a joint venture with Claas in Germany that could turn out to be the most interesting deal of the group, long term. And not to be left out of the feeding frenzy, Deere buys Kemper in Germany.

More Cat: Cat announces a handful of smaller plants in the right-to-work Southeast that everybody is reading as union smoke signals, and that nobody is denying. Cat also adds to its forestry line with a small Swedish manufacturer, and finalizes the Krupp MaK engine deal which gives them a line from 75 to 13,000 hp, which, as we said a few months ago, is a range only slightly short of unbelievable.

Construction Equipment: Terex buys Simon Aerial, not an insignificant addition for Terex, and Case goes trenchless with Bor-Mor. Not exactly ho-hum deals, but ones that get lost in the scale of some of the other moves.

Regal-Beloit buys Marathon Electric: Just your simple, basic $240 million cash deal.

There were times when this industry didn't spend $240 million cash money in a single year on acquisitions. Now, nobody blinks an eye.