Wells Fargo to Acquire CIT's Construction Unit

The money maestros at CIT Group are not only on the Fortune 500, they also manage the financial solutions for more than 80 percent of the Fortune 1000. CIT is one of the nation’s most prestigious lending, leasing and financial advisory companies, working with clients that range from homeowners and small businesses to many of the worlds’ largest and most respected multinational corporations.

Alas, that clientele does not include the construction business — at least, not any more. CIT Group Inc. recently signed an agreement to sell its CIT Construction lending business to Wells Fargo. CIT Construction had $2.4 billion in assets and 235 employees as of March 31. Headquartered in Tempe, Ariz., CIT Construction has provided commercial financing to the construction industry since 1938. It serves contractors who build and repair infrastructure, as well as equipment distributors and dealers that sell and rent construction equipment throughout the United States. It will operate as a division of Wells Fargo Equipment Finance Inc.

“Consistent with our vision to satisfy all our customers’ financial needs, CIT Construction significantly expands our equipment finance lending capabilities and brings opportunities to serve our customers even better,” said Tim Sloan, group head of Wells Fargo’s Commercial Banking, Real Estate and Specialized Financial Services Group. “We’ll be able to offer Wells Fargo’s full suite of products and services to CIT Construction’s customers. This transaction supports Wells Fargo’s long-term strategy to expand a core industry important to the growth of Wells Fargo Equipment Finance.”
If you can operate iron with the steely efficiency of a Top Gun cand

“Our decision to exit this long-standing CIT business reflects our commitment to increasing shareholder value through proactive portfolio management as we look to redeploy capital to other high growth areas of our business,” said Walter J. Owens, president of CIT’s Corporate Finance Group.

CIT Construction originates and services senior secured loans collateralized by a wide range of high-quality construction equipment. It is one of the largest non-captive lenders in the industry with long-standing relationships with most of the industry’s leading participants.

“This transaction complements Wells Fargo Equipment Finance’s strategy of providing capital to meet the needs of customers, ranging from middle market contractors to large manufacturers, in a core U.S. industry,” said John McQueen, head of Wells Fargo Equipment Finance Inc. “CIT Construction is recognized as an industry leader. The team that will be joining us is experienced, passionate and committed to the construction industry. We look forward to building on its success by providing additional products and services for both our customers.”

Case Rodeo Series Event at a Dealer Near You

If you can operate iron with the steely efficiency of a Top Gun candidate, then you might have a chance at winning a free loader backhoe from Case and company. North America’s best backhoe wranglers are being challenged to win a $120,000 Case loader backhoe (not to mention the bragging rights as the best of the backhoe best) to help commemorate the 50th anniversary of the Case loader backhoe.

If you or someone you know can make a loader backhoe dance, enter one of more than 80 local Case Rodeo Series competitions taking place at Case dealerships across the United States and Canada. Be one of more than 5,000 of the top construction equipment operators to compete and see if you make the cut to become one of
the nearly 100 finalists who will be flown to Las Vegas in March 2008.

One operator will walk away with a fully-loaded Case loader backhoe, valued at nearly $120,000. If you haven’t signed up for your chance to compete, now’s the time. Prizes at the local level range from $100 for fifth place to $500 and a trip for two to Las Vegas for the championship competition in March 2008. Hey, even the losers get a free Case T-shirt.

The Case Rodeo Series will also benefit Habitat for Humanity — the international, ecumenical Christian, non-governmental, non-profit organization devoted to building simple, decent and affordable housing. While you’re competing, you can join your Case dealer in supporting your local Habitat for Humanity affiliate. Together, Case, its dealers, employees and customers are expecting to raise nearly $150,000 in contributions and enlist hundreds of volunteers to support this worthy construction-related cause.

Now go look for a Case Rodeo Series event near you; for more info, visit www.caserodeoseries.com.

Gehl Announces Partnership with Milwaukee Brewers

The Brew Crew is having their best year in the National League Central ever — 12 games over .500 at press time and three games ahead of the Cubbies in first place. This pleases Gehl, the Wisconsin machine architect and maker of the biggest skid steer loader on the market.

Recently, Gehl Co. and the Milwaukee Brewers reached an agreement on a multi-year corporate partnership that includes the naming rights to the new all-inclusive group area on the Club Level, which made its debut earlier this season at Miller Park. We assume it’s the reason the Brewers are winning.

“We’re very excited to be partnering with the Milwaukee Brewers,” said Dan Keyes, Gehl vice president of sales and marketing. “The association with the Brewers is a natural fit for Gehl Company and our overall sports marketing program. The Brewers have presented a unique opportunity that we feel will increase the awareness of our company on many levels. Gehl Club allows us to showcase our company, products and brand to a large audience year round.”

In addition to the naming agreement, Gehl will receive additional hospitality and advertising elements through the partnership, including messaging on the first and third base rotational signs.

The Gehl Club is the newest entertainment attraction at Miller Park and has become a popular destination area in its initial season of existence. Located adjacent to The .300 Club, the Gehl Club offers an all-inclusive, upscale entertainment experience for up to 240 people. It features an open-air patio design on three separate levels with numerous seating options, two private bar locations and a full buffet with a variety of food offerings.

“This partnership with Gehl Company is an ideal fit for our newest group facility inside Miller Park,” said Schlesinger. “Forming a partnership with a prominent company like Gehl, a southeastern Wisconsin corporation with nearly 150 years in the business, is an exciting opportunity for the Milwaukee Brewers.”

Canadian Couple Take Polaris Sportsman for Cross-Continent Quadrek

During a camping trip in Utah in 2000, Marc Joinville and France Labonté felt like Lewis and Clark. They had discovered an ATV trail that ran lengthwise through the state of Utah, which is well known for its geological diversity ranging from the snowcapped Wasatch Range to the blinding-white Bonneville Salt Flats.

The couple’s finding sparked the dream to not only conquer the Mormon State, but to take their ATVs from Canada to Mexico, quading the expanse of the United States.

“There are so many extraordinary places to discover, to explore and life is so short,” said Joinville. “We felt using quads would enable us to have access to remote places and give us the opportunity to enjoy incredible scenery.”

Owners of Polaris ATVs, Joinville contacted Polaris regarding their idea to ride cross-continent and the maker of “The World’s Toughest ATVs” provided them with two new Sportsman X2 800 ATVs, parts and clothing. Polaris Sportsman ATVs are designed for long-distance riding, handy during a 10-month trek.

“When Joinville contacted us about their idea to travel across the continent, there was no doubt they would be riding the world’s toughest ATVs,” said Jeff LeFever, marketing manager for Polaris ATVs. “The Sportsman X2 800 is the biggest and most versatile ATV in our lineup making it the perfect machine for the varying terrain and extreme conditions the couple will encounter.”

The Sportsman X2 800s are equipped with an 800-cc Polaris twin engine with electronic fuel injection (EFI) for reliability at higher altitudes and include features such as a second seat that folds into the cargo box for added versatility.
Joinville and Labonté departed from British Columbia, Canada, on July 7. Their Quadtrek journey will take them through Montana, Idaho, Wyoming, Utah, Arizona and down the Baja peninsula, ending in Cabo San Lucas, Mexico. They will live with the basics, camping and living in the wild for 10 months and carrying everything they need in a trailer behind one of the ATVs. Quadtrek will be documented at (the Polaris Web site) www.polarisindustries.com/en-US/Vehicles/EventsAndTours/2007ATVDiaries, which will include updates on their journey and pictures. Last we heard, the couple had already traveled 50 miles into Montana, on top of the 1,000 miles (in less than 50 hours) in a pickup to kick off their 2007 Quadtrek Adventure Tour.

Collector's Corner

ASV Introduces the Posi-Track SR-80 Scale Model Contractors love models — whether they’re clad in bikinis or encased in a glass bottle. For those who enjoy the engineering replicas of the latter, ASV recently released its first die-cast scale model, a highly-detailed 1:32 scale replica of its Posi-Track SR-80 rubber track loader.

“Our new scale model answers the call from Posi-Track owners and collectors,” said Del Carver, director of sales and marketing at ASV. “After years of satisfying the demand for full-sized Posi-Track rubber track loaders, we’ve received many requests for a die-cast scale model.”

The SR-80 replica is approximately 3.5 in. long, 2.25 in. wide and 2.75 in. high and comes packaged in a full color window box. The scale model is a great desk dozing unit, including a moving rubber track, working loader arms and functioning quick-attach interface. The package comes complete with interchangeable work tools including a bucket, grapple bucket and pallet forks (great for hauling office clutter). Realistic, colorful graphics add to its appeal.

The full-sized Posi-Track SR-80 was introduced in 2006 and features an exclusive, independent and multi-suspension rubber track undercarriage, as well as a class-leading cab interior. With features like 2.84-psi ground pressure, 20-in.-wide tracks and 15 in. of ground clearance, the SR-80 represents the pinnacle of rubber track loader development for ASV.
The SR-80 rubber track loader scale model is now available for purchase through ASV dealers or online at (the ASV Web site) www.asvi.com.

Ingersoll Rand Discusses It's Transformation at Strategic Decisions Conference

Bobcat is one of most innovative and important companies in the history of the North American compact equipment marketplace. But the company’s future will entail working in a little limbo, as its parent company, Ingersoll Rand, decides how to restructure its construction business, which could include a sell off of the brand or a spin-off to shareholders.

On May 31, Ingersoll Rand Co. Ltd. chairman, president and CEO Herbert L. Henkel described the company’s progress in executing its transformation strategy during the Sanford C. Bernstein Strategic Decisions Conference in New York City.
“In 2000, we began a process to transform Ingersoll Rand into a diversified industrial firm capable of delivering consistently improving financial performance across all phases of the business cycle,” Henkel said. “In pursuing this goal, we have divested heavy-machinery, capital-intensive businesses and completed approximately 65 bolt-on acquisitions of businesses whose growth, market and operational characteristics offer the prospect of consistent financial performance over the long term.
“Our recent announcement to explore strategic alternatives for our Bobcat, Utility Equipment and Attachments businesses represents a continuation of Ingersoll Rand’s transformation. At the conclusion of the process, which may include an outright sale of these businesses or a spin-off to shareholders, Ingersoll Rand’s global growth platforms will consist of businesses providing customer solutions for climate control, industrial productivity and security. These businesses are well positioned to deliver the growth and financial returns expected from a leading diversified industrial company.”

In keeping with the company’s transformation, Ingersoll Rand’s financial results will now be reported in three segments: Climate Control Technologies, Industrial Technologies (including Club Car) and Security Technologies. The Bobcat, Utility Equipment and Attachments businesses are expected to be reclassified as discontinued operations.

On May 14, the company’s board approved the expansion of its share-repurchase authorization, which was originally announced in December 2006, from $2 billion to $4 billion. Approximately $330 million in shares had been repurchased as of early May 2007 under the original authorization. The timing of the remaining $2 billion of the share repurchase authorization will depend on the disposition of the Bobcat, Utility Equipment and Attachments businesses, as well as other uses of cash in conjunction with the company’s acquisition program.

“We have tremendous flexibility in executing our strategies to enhance shareholder value as the result of our strong annual operating cash flow, the prospective proceeds from the sale or spin-off of the Bobcat, Utility Equipment and Attachments businesses, the proceeds of more than $1 billion we received from the recent divestiture of our Road Development business [to Volvo] and our strong balance sheet. We will continue to execute share repurchases and pursue growth through strategic acquisitions.”

To view the presentation given during the conference, visit: ingersollrand.com/investorrelations/analysts.

John Deere Goes Good Will Hunting by Sponsoring Students

Mungo machine makers like John Deere are always on the prowl for the next generation of construction experts. Bringing bright young talent into their steely grips is critical to the future of the construction industry and Deere’s continual success.
The company’s Construction & Forestry division is doing its part by sponsoring a team of high school students in the celebrated Construction Challenge, a unique event designed to attract the best young people into the construction industry in professions ranging from manufacturing to in-the-field careers.

Developed by the illuminati at the Association of Equipment Manufacturers (AEM) in partnership with Destination ImagiNation Inc. (the world’s largest creativity and problem solving organization), the Construction Challenge focuses on three main areas: 1) awareness of construction-related jobs; 2) construction equipment and manufacturing; and 3) infrastructure awareness. What’s more, the event focuses attention on the importance of the construction industry and the benefits it provides, according to Jim Orr, director of marketing, John Deere Construction & Forestry.

“The construction industry builds the infrastructure we all depend on for our way of life,” Orr said. “We’re excited to be a part of this event, which gives students the opportunity to learn about our business while developing critical life and job skills.”
The Construction Challenge includes six regional events held across the United States in January 2008, including the West (California), Southeast (Georgia), East/New England (New Jersey), East Central (Ohio), Southeast (Texas) and Midwest (Wisconsin) regions. Winning teams, which are each sponsored by an AEM member, qualify to participate in the Construction Challenge finals competition in March 2008 during AEM’s international CONEXPO-CON/AGG exposition in Las Vegas.

The challenge finals, which feature 60 teams of high school students, includes three segments. The dialogue segment is comprised of a researched presentation with moderated discussion and debate on the relationships between construction infrastructure (especially roads/highways and water/sewer) and quality of life. The product development segment requires each team to research, design and develop a new product, while the “Road Warrior” segment asks the teams to explore infrastructure issues and implement a solution with construction equipment (no Mad Max allusions please).

“With more than a million new jobs available by 2012, our industry is booming, yet the workforce is continually shrinking with the retirement of baby boomers,” Orr said. “Our hope is that this event will challenge these young people while conveying to them the tremendous opportunity that awaits in the world of construction.”