Sumitomo (S.H.I.) Construction Co., Ltd. Acquires 100% Ownership of LBX Company Sumitomo (S.H.I.) Construction Machinery Co., Ltd. (SCM), a leading manufacturer of hydraulic crawler excavators headquartered in Tokyo, Japan, announced today that effective as of April 30, 2010 it has acquired full ownership of LBX Company (LBX) headquartered in Lexington, KY. LBX was originally formed as part of a global alliance between SCM and Case Corporation, and holds the manufacturing rights to SCM’s excavator products in North and Latin America. LBX has been marketing and selling Sumitomo excavators, forestry, material handling and demolition products under the Link-Belt excavator brand name since the company’s formation. “This acquisition underscores SCM’s dedication to LBX and the Link-Belt® excavator brand, and will contribute greatly to our success and expansion throughout North, South and Central America,” stated Robert Harvell, CEO of LBX Company. “Over the years, our long-term relationship with SCM has been built on a solid foundation of providing superior product quality, innovative designs, and dedicated commitment to our dealer network and customers.” “We believe that this acquisition will allow both LBX and SCM to achieve our common longterm global growth strategies,” said Kensuke Shimizu, President of Sumitomo Construction Machinery. Since its formation, LBX has passed several growth milestones, including the creation of a corporate campus in Lexington, KY that includes a world-wide parts distribution center, product testing grounds, training facilities and testing and service bays. Additionally, the Link-Belt® excavator products have evolved to meet the needs of today’s marketplace, including the introduction of new models such as the Link-Belt® 360 X2 Rubber Tire material handling excavator, which was unveiled at the ISRI Convention last week in San Diego, CA. “We look forward to working very closely with SCM in the development of future products and our dealer network to further expand our position in the marketplace,” Harvell said. The management team of LBX will remain in place.
Thank you Stock! That was a question I asked about a year ago. It appears LBX could not make it on its own again. The only question left is if the crane division of Link-Belt is also included in this deal.
Does that means, that the next new models of Case and new Holland/kobelco will be the same?
The Truth The acquisition of LBX COMPANY LLC by Sumitomo is a great move for LBX and for Sumitomo and I will tell you why. Previous LBX was not able to compete in certain geographical areas because of agreements between Case, Sumitomo and LBX. With the acquisition, LBX can and will be competing in those markets. Also, Case was never really an advocate of LBX from the beginning and did treat the company poorly related to competition. With the purchase LBX, LBX is free to compete and be very competitive in any market that they choose. They will be opening a manufacturing and distribution organization in Brazil and are working on more multinational initiatives in Latin America. Also, LBX has 0 debt and is more fiscally sound that it has ever been. Their new CFO is absolutely a real super star and has made big changes there. LBX is an more than an “Up in Comer”, they are a great over all choice in the industry. rofessor
Let me say that every Sumitomo machine I ever ran was superb in performance and reliability.They could be a real competitor in the days to come.Ron G