Vehicles and equipment maker Oshkosh Corp. OSK announced Tuesday an agreement to pay $800 million in cash to buy John Bean Technologies Corp.’s JBT AeroTech business. Shares of both Oshkosh and JBT were still inactive in the premarket. Oshkosh said the purchase of AeroTech, which provides aviation ground support products and gate equipment and airport services, will give Oshkosh an entrance into the air transportation support market. The deal, which is expected to close in the third quarter of 2023, should add to Oshkosh’s margins and deliver recurring revenue. The deal will be funded through a combination of cash on hand and use of its revolving credit facility. Oshkosh’s stock has dropped 16.2% year to date and JBT shares have rallied 15.7%, while the S&P 500 SPX has gained 9.5%.
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