The merger of the companies will allow them to offer the broadest product line of earthmoving scrapers in the industry with the largest geographic footprint of dealers in the United States.
K-Tec Earthmovers Inc. announced its merger with Ashland Industries. The merger of these two highly regarded earthmoving equipment manufacturing companies creates one of the largest companies in the industry. The newly merged organizations will be headquartered in Rosenort, MB, Canada, and led by Mikhail (Mike) Palitsky, president of K-Tec. The combined business will have manufacturing and service locations in both Rosenort, MB, Canada and Ashland, Wis.
K-Tec and Ashland are leading manufacturers of earthmoving scrapers and accessory products serving the construction, mining, and agriculture markets. The merger of the companies will allow them to offer the broadest product line of earthmoving scrapers in the industry with the largest geographic footprint of dealers in the United States to provide exceptional service coverage. The combination will provide shorter lead times for customers and accelerated product design and introduction, according to the companies. There will be no management changes at either company as a result of the merger.
"In the weeks leading up to the announcement, the K-Tec and Ashland teams met several times and it was apparent that all of us could not be happier with the 'fit' of the two companies. We share a similar vision for the earthmoving industry and are very proud to unite our families of earthmovers under one umbrella. I want to reassure our dealers and customers that we will not be making any changes to the 2020 sales programs and product offerings. We look forward to meeting with our dealership network to gain their feedback on their needs for the future, and how we can help them each succeed," said President Mike Palitsky.
"Everyone at Ashland is very excited to be joining forces with K-Tec," Randy Rust said. "The merger of our two companies will provide our dealers and customers a market leader with the broadest range of land transforming equipment available today. With the merger of our companies and continued support from our strong strategic OEM partnerships, we expect to provide industry-leading solutions and support to our customers."
K-Tec is majority owned by an affiliate of private investment firm Owner Resource Group LLC ("ORG"). ORG Managing Director, Jonathan Gormin, said, "We are excited about our partnership with K-Tec and Ashland and believe in the long-term growth potential of the companies. We believe this transaction supports the vision of both management teams to be a global leader in the earthmoving industry. The combination will allow the business to expand its product offerings, enhance innovation and provide outstanding support to our dealers. We look forward to supporting the management team's efforts to realize the full potential of the combined organization."
For more information, visit www.ktec.com and www.ashlandind.com
About Owner Resource Group LLC
Owner Resource Group is an Austin, Texas, based private investment firm founded to bring superior outcomes to privately held businesses. The company makes investments that enable business owners and management teams the ability to pursue their objectives and accelerate the growth of their companies in a disciplined manner. ORG appreciates an owner's need for fairness, certainty, flexibility and confidentiality when considering a transaction. After a transaction, the ORG philosophy is to align our interests with management to support the existing culture and the continued growth. For further information regarding ORG and its investments, please visit www.orgroup.com
About K-Tec Earthmovers Inc.
K-Tec Earthmovers Inc. believes they have developed the most profitable, productive way to move dirt. Founded in 2000, K-Tec provides its customers with high quality scraper equipment and earthmoving accessories for purchase through their authorized dealers around the globe. Their offerings include Direct Mount, Train and ADT scrapers ranging from 28 to 63 cu.yds (21.4 to 48m3), and other earthmoving accessories to provide an efficient solution to various construction, mining, or agriculture projects. K-Tec's growth is attributed to a strong product, after-sale services and their industry-leading warranty policies. K-Tec strives to provide leading edge earthmoving equipment for their customers to successfully and efficiently transform landscapes now and into the future.
About Ashland Industries
Ashland Industries is an internationally successful company founded on the small-town community with "Made in America" values. Ashland manufactures a full line of pull-type earthmovers for customers of all sizes. With models from 30 cu.yds. for large 4 WD tractors to 2.5 cu.yds. for compact track loaders skid steers. Ashland also supplies construction-grade offset disc harrows for deep plowing, mixing and aerating. Since 1953, Ashland's scrapers have combined high-quality design with exceptional service and support.
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