DEMOLITION & RECYCLING ISSUE
AMERICAN
WRECKING, INC. Founded on Honesty and Hard Work Backed by Family Principles & Values PG. 6
Demolition
CONTENTS
Recycling Issue
COVER STORY 06
AMERICAN WRECKING INC.
FOUNDED ON HONESTY AND HARD WORK BACKED BY FAMILY PRINCIPLES & VALUES
FEATURES
06
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RAMIREZ COMPANY, INC.
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NATIONAL DEMOLITION CONTRACTORS
A TRUE AMERICAN SUCCESS STORY WITH MANY MORE PAGES TO TURN BRINGS DOWN 99 CENTS ONLY STORE WAREHOUSE TO MAKE ROOM FOR NEW MEGA COLD STORAGE FACILITY IN LOS ANGELES
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On the Cover:
Front Cover Photo Credits: Volvo EC480E HR Ultra High-Reach Excavator photographed by Luis Galaviz, American Wrecking, Inc. Photo of Hyundai Excavator provided by Ramirez Company, Inc. Photo of (3) Cat 336E Excavators provided by National Demolition Contractors.
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INDUSTRY NEWS ADVERTISER INDEX
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American Wrecking Inc.
Founded on Honesty and Hard Work Backed by Family Principles & Values By Brian Hoover, CMS, Senior Editor
Photos Contributed by Luis Galaviz & Tarl Casey
Above: Overview of American Wrecking’s demolition of 100,000 square foot cold storage facility in Vernon. The hard demolition was completed in 30 calendar days.
American Wrecking, Inc. (American Wrecking) offers commercial, industrial, residential, military and green demolition services, as well as hazardous material abatement and full recycling capabilities. American Wrecking is an industry-leading specialist in the art of demolition, environmental remediation, asbestos abatement and hazardous material removal with services throughout Southern California.
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Jose Galaviz Sr. arrived in the United States in the early 70s and began working as a brick cleaner for a Southern California demolition contractor. He worked his way up from laborer to equipment operator, eventually becoming part of the Local 12 Union. Jose, who is better known by his friends and colleagues as Pepe, worked hard to save enough money so that he could buy his first piece of construction equipment. By 1980, Pepe had
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purchased a track loader and began working for a variety demolition contractors as the owner of his own company, Pepe Galaviz Loader Service. He quickly made a name for himself with a long list of demolition contractors making him a preferred vendor and asking for his services first before moving on to other sources. A few years later, Pepe brought his brother, Jerry Galaviz, in from Mexico to be his partner in Galaviz Brothers
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Below: American Wrecking relied on the support of a variety of industry leading distributors and vendors to keep the 30-day schedule on the Vernon project.
Trucking Company. Jerry was a truck driver in Mexico and although he did not have any construction experience, his business knowledge and work ethic allowed the duo to take on more work as they began to grow the business to the next level. Their combined entrepreneurial spirit, plus Pepe’s background as a heavy equipment operator, made for a winning team. Then, in 1986, the brothers came upon an opportunity to purchase the assets and critical demolition license from an existing business. The business was American Wrecking, Inc. and together Pepe and Jerry Galaviz were able to grow their newly acquired company to nearly $1 million annually, but this would only be the beginning. American Wrecking continued to grow modestly
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up until 1993 when Pepe and Jerry made the decision to partner with their longtime friend, Robert Hall, to form the current American Wrecking enterprise. Together, this dynamic trio was able to go from just shy of $1 million annually to $15 to $20 million within the following 10 years. Robert Hall is a name that many in the demolition industry will recognize. He is well-known and respected and has worked for and managed some of the largest demolition contractors in the world. As one of the pioneers in this industry, his addition as a partner in American Wrecking changed the entire landscape of what the company was able to do. Hall showed some of his knowledge and capability
just one year after becoming a partner in American Wrecking. It was 1994 when the devastating Northridge Earthquake hit the Southland. Through the guidance of Bob Hall, American Wrecking was able to get a large percentage of the FEMA work associated with the earthquake and this was just the boost needed to start what was soon to be an unprecedented success. Jose Galaviz Jr. (Jose) grew up right alongside his namesake, Jose (Pepe) Galaviz Sr., who taught him the intricate details of the technically advancing demolition business. Jose had worked only for American Wrecking growing up, except for one summer when he helped out his uncle and then
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Above: American Wrecking used two Volvo EC450 excavators to demolish 42-foot high tilt-up construction walls in the freezer area.
a brief internship with Wells Fargo during high school. “I am certainly fortunate to have grown up in such a great family. My sister (Claudia) works in the office as our AP clerk and my brother (Carlos) is our safety director out in the field,” says Jose. “Additionally, three more of my father’s brothers (Ruben, Manuel, and Rafael) work out in the field. There are three generations of Galaviz family members working here, including a long list of cousins. Working hard and family values are truly at the heart of what we do here at American Wrecking. It is not just the family and relatives that make it work, but all 100-plus members of our American Wrecking team working together to be the best we can be.” Today, Jose Galaviz Jr. works for American Wrecking as part of the management team, working primarily as an estimator and project manager. “I spend some of my time working in the office
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helping with contracts and learning the finer intricacies of this business,” says Jose. “We average around 160 jobs a year and have successfully completed a long list of unique and challenging projects since our inception.” One job that stands out in Jose’s mind is the demolition of a torpedo testing facility in Azusa Canyon which, according to Jose, went down as one of the more difficult and successful projects in the company’s history. American Wrecking has also performed a few implosions during their history. “The last implosion we did was in San Pedro,” says Jose. “It was constructed with lift slab construction where the framework of the building was supported at the roof level instead of the bottom level.” According to Jose, this made it extremely difficult to bring down without the use of explosives. “This was a 11-story building with a penthouse, and it was the first time in 12 years that
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Los Angeles County allowed explosives to be used in the demolition of a building. We worked together with an explosive demolition specialist out of Oklahoma who helped us put together a safe and effective engineered implosion plan. The project created some real excitement because it was one of the first earthquake-resistant buildings in Los Angeles County to be brought down with explosives.” American Wrecking just recently finished one of their larger projects to date in Vernon for a major food distribution company that hired them to bring down an existing cold storage facility to make room for a brand new 100,000 square foot cold storage freezer facility. Jerry Gutierrez Jr. is the project manager on this project and he has been overseeing this job since the estimating and planning stages. “This project started out in the first week of May with the abatement of
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typical hazardous material that you will find in a building from the early 80s,” says Gutierrez. “A few days later we began the soft demo, removing things like shelving, ceiling panels, drywall and other miscellaneous materials from the offices, warehouse and freezer area.” According to Gutierrez, who has been with American Wrecking since 2002, the soft demo went on for almost two weeks and included breaking out and removing the suspended slab
on to the hard demolition that included the removal of 42-foot high tilt-up construction walls in the freezer area. “One of these walls was positioned adjacent to 44th Street, right up against the public sidewalk and positioned very close to aerial telephone cables,” says Gutierrez. “We first prepared this wall by using hydraulic hammers to drill two holes in the center area. We then attached one-inch cables
Below Left: American Wrecking’s Volvo EC450 bringing down one of the walls.
on the ceiling, breaking out the floor, while working their way down to the basement level. The basement area alone encompassed around 23,000 square feet, with the freezer area covering approximately 20,000 square feet, offices close to 5,000 square feet and another 20,000 square feet of warehouse area. “Much of the soft demo was completed by hand, but we also used several of our skid steers for the heavier work,” says Gutierrez. After the soft demo was complete, it was time for American Wrecking to move
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continues Gutierrez. “The job was completely buttoned up June 22 and we are proud to announce that we once again finished everything on time and more importantly without any reportable incidents. Everybody says it, but at the end of the day the most important thing to everyone that works here at American Wrecking is making certain that everyone goes home to their family safe and sound after a hard days work.”
Below Right: American Wrecking using UB Equipment hydraulic hammer to process and meet state requirements for recycled concrete.
through these holes, using backward tension to bring the wall down safely and away from public areas.” Once the wall was safely on the ground, American Wrecking put their hammers and processor attachments to work separating the rebar and wire mesh from the concrete. “We processed around 10,000 yards of concrete on this project, using our crusher on-site to prepare the material to be reused as base material on the new construction project that followed,”
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American Wrecking owns and maintains a large fleet of name brand heavy construction equipment. Their heavy machinery is made up primarily of Volvo and Caterpillar and their attachments inventory includes a large number of hydraulic hammers, processors, and thumbs from local supplier, UB Equipment. “We utilized two Volvo 450 excavators, a Komatsu 450 excavator and UB 5,500 and 7,500 hydraulic hammers, as well as buckets with thumbs and processing
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Below: American Wrecking has a variety of tools and equipment at their disposal to perform any demolition project. From wrecking balls to long-reach excavators and recycling equipment they have are ready with the perfect equipment soluion.
Left: American Wrecking processed and recycled 13,300 tons of concrete on-site at the Vernon project. Below: American Wrecking Implodes lift slab construction building in San Pedro.
shears on the Vernon project,” says Gutierrez. “We also had a Cat 973 track loader and 950 wheel loader on-site, as well as a water truck for dust control purposes.” According to Gutierrez, American Wrecking had as many as five operators and 15 laborers during the heaviest portion of this project. “Our crews did a fantastic job on this project and I want to
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personally thank them for a job well done. It takes a team to get somehting like this done right and we have the best in the business. Our laborers, operators, superintendents, foremen and owners all work together as a unit and I think this is what separates us from the pack.” Since their inception, American Wrecking's mission and values have been
centered around family and the belief that you should work hard, be honest and be on time. 40-plus years later, these core values still remain at the heart of their business. For more information on American Wrecking, please visit www. americanwreckinginc.com or call their South El Monte headquarters at (626) 350-8303. Cc
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Ramirez Company, Inc. Another True American Success Story With Many More Pages To Turn
By Brian Hoover, CMS, Senior Editor Photos contributed by: Ramirez Company, Inc.
Left L to R: Paul Ramirez and Nick Ramirez, owners of Ramierz Company, Inc. outside of their El Monte headquarters.
Jack Ramirez started Ramirez Company, Inc. (Ramirez Company) in 1988 as an owner operator doing skid steer loader work for anyone that had a need for his services. His plan was to start his company with his brother, David, but that was not to be as he was diagnosed with cancer and sadly died just a year and a half later. David left behind six children, the youngest of which was Nick at just one-year-old. Young Nick could be found doing all sorts of cleanup work around his uncle’s shop from the age of six. He would rush over to the shop every day after school, on weekends and throughout the summer break. “When I graduated from high school in 2005, I knew exactly what I was
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going to do as a full-time job. I went to work for my Uncle Jack of course, where my brother, Paul, had already started working a few years before,” says Nick. “The company was still primarily doing Bobcat loader work and my brother and I started taking on more of the workload because my uncle was working fulltime for the local school district.” In 2010 they procured a C21 demolition license and the company began taking on soft demolition projects. “My brother Paul and I were working hard to grow the company and by 2010 we had 15 employees,” says Nick. “Then in 2012 I went out and got a C8 concrete construction license and we starting doing flatwork, foundations, and other
2017 Demolition & Recycling ISSUE CALCONTRACTOR
small concrete type work. We knew we had to diversify because work was really starting to slow down.” In 2014, Ramirez took another step toward growth and diversity by securing their general construction A license. “Having our general contractors license opened more doors and we began taking on larger industrial and commercial work, and our service offerings began to expand as clients continued to ask for additional services,” says Nick. “Many times, it was difficult to get subcontractors when and where we needed them. So we started doing our own structural steel welding and fabrication, and other trades like mechanical plumbing, electrical, framing and even underground construction.” Nick and Paul
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Above: Ramirez Company crews delivering their new New Holland L228 skid steer and E35B mini excavator to a jobsite.
Ramirez did not have to look far for the help they needed because their brothers and sister were already trained and ready after working for other firms. All of Nick and Paul’s siblings now work for Ramirez Company. “My oldest brother, David, brought in his talent and experience as a carpenter, framer, and drywaller, while the next oldest, Steven, began putting his experience as an equipment operator to work for our company,” says Nick. “Our brother, Joseph, comes from a plumbing background and he runs our plumbing division. My sister, Andrea, is our office manager and she does a great job handling all of the administrative duties. My brother and partner, Paul oversees the field operations and does a really great job managing our long list of diversified projects.” Nick Ramirez spends most of
his days running the company from the inside, putting estimates together and bidding on jobs and handling most of the public relations duties. “We hired a fulltime estimator at the beginning of the year and this proved to be a good move as we are at max capacity with what we can currently handle,” says Nick. “We have somewhere between 40 to 50 employees and will probably come in at just over $7 million by the end of the year. We are in a nice comfortable place right now, but I think if we stay on track we will be closer to $10 million and 75 employees in three to five years.” Nick points out that bigger is not always better, and he suggests that there are definite advantages to remaining small and manageable. “I have friends and colleagues that are doing several million more that we do each year, but at the end
of the year we always seem to show more profit,” says Nick. “We want to be small enough to manage our business properly, but also big enough to take on those really large jobs that come around now and then. We have hundreds of customers; a lot of repeat business and companies like SpaceX, In-N-Out Burger and McCormick Construction keep us very busy on a consistent basis.” Although Ramirez Company performs a variety of trades, yet 50 percent of their annual business is geared toward demolition construction. They are currently on a job at Ontario Mills Mall where they are performing the soft demo on a Victoria Secret store and they will be on a similar project in Palmdale very soon. According to Nick, one of Ramirez Company’s more memorable jobs was for SpaceX back in 2016, when they were asked to demo a building on the SpaceX campus to make room for a memorial commemorating the first Falcon 9 booster rocket to successfully return and land safely at Cape Canaveral after a Dec. 21 launch that carried 11 communications satellites. The memorial is actually the 156-foottall Falcon 9 rocket stage itself and it serves as a visual trophy for motorists and pedestrians to view when passing by the corner of Crenshaw Boulevard and Jack Northrop Avenue in Hawthorne. “We took down a two-story building in Hawthorne at SpaceX
Below: Ramierez Company broke out concrete and set rebar in one day and then paved 6,000 square feet of concrete the next day for In-N-Out Burger in Van Nuys. A 27-person crew worked tirelessly on Easter Sunday and the following day.
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and then turned around and constructed and poured the pad that would hold the memorial rocket stage,” says Nick. “We rented a large hydraulic excavator from Heavy Equipment Rentals along with the necessary attachments. I’d have to say that this is one of our more unique and unusual jobs to date.” Ramirez Company also does a great deal of work for In-N-Out Burger with more than two weeks of work lined up at this time throughout Southern California. They recently demoed ADA ramp areas at several stores, replacing them with new concrete and new yellow ADA pads. “In-N-Out has been going with drought-tolerant landscaping for some time now, and when they redo an existing restaurant in Southern California, we go in and demo and replace the existing walkways at the same time,” says Nick. “But when they told us that they needed more than 6,000 square feet of drivethru lane demoed and replaced in Van Nuys in just two days, we knew that we were in for a real test. This job took place this past spring and to make things a little more challenging, we were asked to do it beginning on Easter Sunday.” Nick Ramirez offered the double time work to all 40 of his crew members, and 27 ended up taking him up on the offer. According to Nick, the job started at 1:30 a.m. on Easter Sunday, just after the store closed. “We tore out the entire concrete drive lane that wrapped around the entire store and then placed in the new rebar on the first day. On the second day, we poured the concrete and because we used a special quick dry concrete mix, the lane was opened for business the following day,” says Nick. “I was on the job from start to finish and did not leave until we had finished power washing the pickup driving lane and entire parking lot area.
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Above L to R: Charles Min, UB Equipment and Nick Ramirez, Ramirez Company, Inc.
This is where we shine, by going that extra mile for our customers. It was a proud moment for our company and crew.” Ramirez Company has risen from humble beginnings to a multimillion-dollar general engineering company that serves all of Southern California. Nick and Paul’s Uncle Jack started with one used skid steer loader and now the company has an entire fleet of machinery. Although they have gone with Bobcat for their skid steers and compact excavators in the past, Nick recently had the opportunity to try out some New Holland equipment. “I have known and worked with Bryan Bernardino for many years and I remember my uncle buying from him all the way back to when I was just 12 years old,” says Nick. “When he moved over to Scott Equipment in Santa Fe Springs, he approached us to see if we would be interested in looking at some New Holland machines. I half jokingly told him that he would have to make worth our while and then agreed to try out a skid steer and compact excavator. I have to tell you that I was very impressed with what I saw and so were our operators. We purchased a skid steer and excavator and are looking at adding other units to our fleet very soon.”
2017 Demolition & Recycling ISSUE CALCONTRACTOR
Ramirez Company has other vendors that they like doing business with, and one that sits at the top of their list is UB Equipment out of Baldwin Park. “Our attachment inventory consists of eight hydraulic breakers, several grapples, and an auger attachment and they are all from UB Equipment,” says Nick. “When you purchase attachments for the demolition industry it is all about the service after the sale, and nobody does it like Charles Min at UB Equipment.” Ramirez Company even buys all of their bits from UB Equipment and Nick refers to the relationship as a win/win opportunity. “I like everything about the UB attachments. The breakers hit hard and all of their attachments are made to endure the grueling tasks associated with the demolition business,” says Nick. “I would never go with anyone but UB, and to be perfectly honest, I don’t see why anyone else would either.” Nick and Paul Ramirez really started taking over the business back in 2011, but their uncle, friend, and mentor, Jack Ramirez, has always been there to offer advice and assistance whenever requested. “My uncle is my best friend and my mentor and we still spend a lot of time together, talking about family and business,” says Nick. “If I am being perfectly honest, I have to say that I never in my wildest dreams thought that our company would be where it is today. We have been truly blessed and all of the glory goes to God. I can’t wait to see what is around the corner for all of us here at Ramirez Company.” For more information on Ramirez Company, Inc. call their Azusa headquarters at (626) 969-7530. Cc
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NATIONAL DEMOLITION CONTRACTORS brings down 99 cents Only store warehouse to make room for new mega cold storage facility in los angeles By Brian Hoover, CMS, Senior Editor
Photos contributed by: National Demolition Contractors
Above: National Demolition Contractors’ equipment line-up at the 99 Cents Only Store warehouse demolition project consisted of new Cat 336 excavators which are Tier 4 complaint.
National Demolition Contractors has been around for close to 20 years and in that time they have never shied away from a job because of difficult challenges or a tight schedule. They have once again proved this fact by recently taking on a project that called for a large amount of abatement, demolition, crushing and recycling to be accomplished within an extremely tight shedule. National Demolition
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Contractors began bidding on this project earlier this spring knowing that it would be a difficult bidding process with an even more challenging time schedule. The project is located in the heart of Los Angeles where the property served as a warehouse distribution center for local 99 Cents Only Stores in the LA Basin. Jorge Rodriguez is a long time employee of National Demolition Contractors, and during his tenure, he has
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served the company in several capacities. He is currently the company’s safety manager and also takes care of much of the site photography, job site documentations and working with the media. “This particular job called for a strict 45-day schedule, but we are known throughout the industry as the go to demolition contractor for this type of work,” says Rodriguez. “During the bidding process, we presented several examples
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of our work, specifically where tight deadlines and grueling schedules were concerned. We also presented them with testimonials and recommendation letters from well-known and respected contractors that have hired us for challenging projects, like the demolition of the LA Sports Arena.” The hard work and preparation paid off and National Demolition Contractors was awarded the project as the owner and contractor wasted no time in
Above: National Demolition Contractors’ Cat 336 excavators work in tandem to bring down the 100-year-old warehouse in the heart of Los Angeles.
Above: In order to meet AQMD dust control standards 5,000 gallon Cat water trucks equipped with water cannons worked alongside the excavators.
getting started. “We bid the job in April and began demolition in May and got to work right away spending the first two weeks on abatement where we removed hazardous materials including asbestos from the more than 100,000 square foot facility,” says Rodriguez. “We put together a detailed engineered plan that took into account that certain sections of the warehouse were built around 110 years ago. It was already deteriorating in some areas and
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our plan called for personnel to be positioned in certain perimeter areas; specifically in certain alleyways where truck traffic was continuously heavy. Safety is always job one and we had a lot of flagging and traffic control personnel on-site at all times, especially in the perimeter line areas.” Rodriguez points out that three of the buildings were 3-story structures constructed of poured in place concrete, while the other buildings were big tilt-up warehouse
structures. “There were six buildings interconnected where they seemed to add space as needed over the years,” says Rodriguez. “It was a lot to take down in a short period of time and all the while we kept in close contact with the surrounding community. It was a real mission to let the neighbors know that we were going to be on-site for the next 45 days and that we were dedicated to doing everything we could to mitigate all issues like dust and noise.” National Demolition Contractors had water trucks and crews on-site 24-hours a day, including weekends to maintain dust control and monitor the perimeter. “This was a high profile project and AQMD was out on the job just about every day. We went above and beyond AQMD requirements, which is something we strive for, along with one of the best safety records in the industry,” says Rodriguez. “Our 0.63 EMR (Experience Modification Rate) rating may just be the lowest in California and that is something we are very proud of.”
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National Demolition Contractors began their hard demolition at the corner of Union Pacific Avenue and Indiana Street, bringing down and processing some 60,000 tons of concrete before the job was completed June 23. “We demoed, processed and crushed all of the concrete and other materials within a single month and that is pretty impressive,” says Rodriguez. “All of the processed concrete remained on-site to be used as base material for the upcoming
Above: National Demolition Contractors uses UB Equipment hammers and pulverizers to perform their demolition work.
Above: National Demolition Contractors’ Cat excavators are equipped with specialty quick couplers for easy and safe connection for all attachments.
new building project, and we cut and trucked out all of the rebar, steel mesh, and other metals to a local recycling facility. I think we had a recycling rate of around 97 percent on this project.” Bringing down the structures safely was made a bit easier due to National Demolition’s impressive fleet of excavators, attachments and other equipment. “We utilized around 40 crew members on this project; 20
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for the soft demolition and abatement and 20 for the hard demolition duties,” says Rodriguez. “We also had more than 15 excavators on-site, ranging from Cat 321, 335 and 345 excavators to two of our flagship Cat 330 high reach excavators.” In addition, National Demolition made use of Cat 725 rock trucks to move the crushed and processed material around the site for future use. “When it comes to attachments, we go with UB
2017 Demolition & Recycling ISSUE CALCONTRACTOR
Equipment. We had 5 to 12 thousand pound UB hydraulic hammers in use throughout the project site, as well as pulverizers and buckets with thumbs,” says Rodriguez. “There was a great deal of steel and rebar recycling associated with this project, including a massive all structural steel loading dock.” Although the 99 Cents Only Store demolition was full of challenges, it is exactly what National Demolition Contractors’ strives for when they are looking to bid on a project. Our general superintendent, Richard Alarcon was on this project throughout its duration, as was our foreman, Joe Severan and both of these men did an excellent job communicating with everyone associated with the project, and managing all of the pieces that had to work together almost perfectly in order to finish in just 45 days. We are certainly well-known for going after projects that others may pass on and that all comes down to planning,
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experience, and execution,” says Rodriguez. “We also go after and excel on work that we like to call ‘whale jobs,' you know those massive endeavors that require every part of your ‘A Game’ to successfully complete.” National Demolition Contractors has had their share of these type of projects over the years, including the Hollywood Park Demolition Project, the Los Angeles Sports Arena, and the Los Angeles Civic Center jobs.
Above: Cat 336 excavators processing material on-site.
Above: Completed 99 Cents Only Store demolition site in Los Angeles.
National Demolition Contractors is continuing their efforts to expand to the north and they are starting an environmental division where they make hazard assessments on previous projects where, for example, underground tanks were removed, and for other soil remediation applications. “We have successfully built a great brand here in Southern California, by consistently adhering to the very highest
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safety standards, while remaining on budget and on schedule,” says Rodriguez. “We now feel the time has come to not only expand into new territories like Northern California but also to take on other construction niches by offering demolition services for refineries and nuclear facilities. We have recently gone through excessive training and preparation in this area, and have successfully obtained the proper licenses
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and certifications. This will be a whole new growth area for our company and we are looking forward to taking on more of this type of work.” Jennifer and Jeff Perry founded National Demolition Contractors nearly 20 years ago, starting out as a small construction hauling company. The company quickly grew to encompass all types of demolition, lead and asbestos abatement and environmental remediation. At National Demolition Contractors, it is about much more than just knocking down buildings and bridges. It is the melding together of experienced personnel, using intuitive estimating techniques and state-of-the-art equipment to provide their customers with solutions to their complex project needs. For more information on National Demolition Contractors, please visit their website at www. nationaldemolition.com or call their San Pedro headquarters at (310) 732-1991. Cc
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DEERE HAS SIGNED DEFINITIVE AGREEMENT TO ACQUIRE THE WIRTGEN GROUP FOR APPROXIMATELY $5.2 BILLION MOLINE, Illinois (June 1, 2017) – Deere & Company (NYSE: DE) has signed a definitive agreement to acquire the Wirtgen Group, a privately-held international company that is the leading manufacturer worldwide of road construction equipment. The purchase price for the equity is EUR 4.357 billion in an all-cash transaction. The total transaction value is approximately EUR 4.6 billion (USD 5.2 billion based on current exchange rates), including the assumption of net debt and other consideration. The Wirtgen Group had sales of EUR 2.6 billion in the year ending December 31, 2016. Deere expects the transaction to be accretive to earnings per share and currently expects to fund the acquisition from a combination of cash and new equipment operations debt financing. Detailed financial information concerning the transaction is included in an investor presentation available at www.JohnDeere.com/eventsand-presentations. Headquartered in Germany, the Wirtgen Group has five premium brands across the entire road construction sector spanning milling, processing, mixing, paving, compaction and rehabilitation. Wirtgen's highly complementary product portfolio enhances Deere's existing construction equipment offering and establishes Deere as an industry leader in global road construction. The Wirtgen Group has a global footprint with approximately 8,000 employees
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Above: Products made by the Wirtgen Group are complementary in the road construction process to John Deere equipment shown at steps 1, 5, 6 and 7.
and sells products in more than 100 countries through a large network of company-owned and independent dealers. "The acquisition of the Wirtgen Group aligns with our longterm strategy to expand in both of John Deere's global growth businesses of agriculture and construction," said Samuel R. Allen, Deere & Company Chairman and Chief Executive Officer. "Wirtgen's superb reputation, strong customer relationships and demonstrated financial performance are attractive as we expand the reach of John Deere construction equipment to more customers, markets, and geographies." Max Guinn, President of Deere's Worldwide Construction & Forestry Division, said, "This transaction enhances our global distribution options in construction equipment and enhances our capabilities in emerging markets. Spending on road construction and transportation projects has
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grown at a faster rate than the overall construction industry and tends to be less cyclical. There is recognition globally that infrastructure improvements must be a priority and roads and highways are among the most critical in need of repair and replacement." Stefan Wirtgen, Managing Director at Wirtgen, said, "The Wirtgen Group has a legacy of technology and innovation with market-leading products and a strong focus on the customer. As we looked to the future, we specifically chose Deere as the buyer because of our long-held respect for the organization and our full confidence that Deere is dedicated to the ongoing success of the Wirtgen Group and our employees worldwide." JĂźrgen Wirtgen, Managing Director at Wirtgen, added, "Our company's strength and success comes from dedicated employees who are focused on helping customers succeed in the
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road construction industry. We believe this transaction allows the company to be successful well into the future - independent of our family ownership." Deere plans to maintain the Wirtgen Group's existing brands, management, manufacturing footprint, employees and distribution network. The combined business is expected to benefit from sharing best practices in distribution, customer support, manufacturing and technology as well as in scale and efficiency of operations. The transaction has been approved by Deere's Board of Directors. The purchase is subject to regulatory approval in several jurisdictions as well as
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certain other customary closing conditions. The companies said they expect to close on the transaction in the first quarter of Deere's 2018 fiscal year. Transaction advisors included Citigroup as exclusive financial advisor to Deere, Linklaters LLP as deal legal counsel, Kirkland & Ellis LLP as securities legal counsel and EY as accounting and tax advisor. The Boston Consulting Group served as a strategic advisor. The WIRTGEN GROUP (www. wirtgen-group.com) is an internationally operating group of companies in the construction machinery sector incorporating the traditional product brands: WIRTGEN, VĂ–GELE, HAMM, KLEEMANN, BENNINGHOVEN, and CIBER. As a technological
leader, the Wirtgen Group offers its customers mobile machine solutions for road construction and road rehabilitation and plants for mining and processing minerals or recycling material and for the production of asphalt. Deere & Company (www. JohnDeere.com) is a world leader in providing advanced products and services and is committed to the success of customers whose work is linked to the land - those who cultivate, harvest, transform, enrich and build upon the land to meet the world's dramatically increasing need for food, fuel, shelter and infrastructure. Since 1837, John Deere has delivered innovative products of superior quality built on a tradition of integrity. Cc
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VOLVO CE UNVEILS 100% ELECTRIC COMPACT EXCAVATOR PROTOTYPE AT VOLVO GROUP INNOVATION SUMMIT Volvo Construction Equipment (Volvo CE) unveiled its latest concept machine – known as the EX2 – to industry specialists, policymakers, the media and academics at the Volvo Group Innovation Summit on Tuesday May 16th. The 100% electric compact excavator prototype delivers zero emissions, 10 times higher efficiency, 10 times lower noise levels and reduced total cost of ownership compared to its conventional counterparts. It is believed to be the world’s first fully electric compact excavator prototype. The EX2 was presented at the Volvo Group Innovation Summit in London, UK, alongside innovations from across the Volvo Group, including an autonomous refuse truck from Volvo Trucks and an electric bus from Volvo Buses. The innovation summit centered on infrastructure and transport in cities of the future, and focused on how the industry can have a positive impact on society through increased transport efficiency, reduced environmental impact and improved traffic safety. ELECTRIFYING INNOVATION The Volvo Group defines electromobility as ‘commercial vehicles and machines that can utilize an electrical motor to propel or to perform the main purpose of the machine’. To make the EX2 prototype fully electric, the combustion engine has been replaced with two lithium ion batteries, totaling 38KWh, which store enough
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Above: Volvo Construction Equipment demonstrated the EX2 – a fully electric compact excavator that delivers zero emissions, 10 times higher efficiency, 10 times lower noise levels and reduced total cost of ownership – at the Volvo Group Innovation Summit in London.
electric energy to operate the machine for eight hours in an intense application, such as digging compact ground. The hydraulic architecture has also been replaced with electric architecture which incorporates electromechanical linear actuators that help to optimize the transmission chain. Removing the hydraulic system and the combustion engine, as well as reducing the cooling needs, has led to significantly lower noise levels. At this stage, the EX2 is purely a research project and there are currently no plans for industrialization. “In line with the Volvo Group’s vision to be the
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most desired and successful transport solution provider in the world, Volvo CE is committed to contributing to sustainable development,” said Thomas Bitter, Senior Vice President of Marketing and Product Portfolio. “At Volvo CE we are developing technologies connected to electromobility, intelligent machines and total site solutions that will benefit our customers and the environment by contributing to increased machine performance, productivity, efficiency, safety and sustainability. Our future products and services will play an important part in building a sustainable society.” Cc
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CASE INTRODUCES CX290D MATERIAL HANDLER AND CX290D SCRAP LOADER FOR WASTE AND SCRAP APPLICATIONS
Above: New mid-sized CX290D models bring the performance advantages of the CASE D Series line to the scrap and waste handling industries.
CASE Construction Equipment has introduced two all-new crawler excavators to its D Series lineup: the CX290D material handler and CX290D scrap loader. With an operating weight of 72,100 pounds and lift capacities of up to 24,650 pounds, each purpose-built model is designed specifically for use with grapples, magnets, shears and other attachments used in the scrap and waste industries, and offers several key features that fine-tune the machines for material handling and scrap loading applications. The CX290D material handler features a 177 HP Tier 4 Final engine, a hydraulically controlled elevating cab, longer
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arm and boom with optimized hydraulic circuits for improved attachment performance and reduced shock in the cab, as well as an electronic sensordriven anti-interference device that automatically prevents the grapple or other attachments from coming into contact with the machine’s structure during operation. The CX290D also features additional guarding on the cab and undercarriage designed to protect the operator and machine during tough waste and scrap handling applications. The scrap loader version features a goose-neck arm and a straight boom configuration for dedicated scrap loading applications.
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Each D Series model is built to provide significant operational gains, including decreased cycle times, improved responsiveness and multifunctional controls, and greater fuel efficiency. An electronically controlled hydraulic pump and larger control and solenoid valves increase lifting capacities and improve responsiveness. D Series models offer more standard features than previous CASE excavators, simplifying the buying process and making them extremely versatile and operator friendly. All CASE D Series excavators provide peace of mind and lower total cost of ownership through CASE ProCare™.
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Maintenance-free Tier 4 Solution The CASE CX290D models meet Tier 4 Final emissions standards through an innovative combination of selective catalytic reduction (SCR) and diesel oxidation catalyst (DOC) technologies, which helps maximize uptime and performance – all with minimal maintenance. There is no diesel particulate filter (DPF), no DPF regeneration or associated lifetime service costs. These technologies, combined with the CASE Intelligent Hydraulic System, make the D Series the most powerful and efficient CASE excavators ever introduced. Intelligent Speed, Power and Efficiency Faster cycle times are achieved through a new electronically controlled pump, a larger control valve and multiple sensors. These features combine with the CASE Intelligent Hydraulic System and its four integrated control systems to make the best use of the machine’s hydraulic power and momentum, resulting in added strength and fuel efficiency. The four systems that make up the CASE Intelligent Hydraulic System are: Boom Economy Control (BEC), which reduces RPMs by using gravity during boom down and swing; Auto Economy Control (AEC), which lowers RPMs during idle and automatically shuts down the engine after a preset idle time; Swing Relief Control (SWC), which reduces hydraulic power at the swing start; and Spool Stroke Control (SSC), which adjusts hydraulic pressure during digs.
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Using improvements to the Spool Stroke Control system, the CX290D material handler and scrap loader re-use hydraulic fluid whenever possible to automatically increase cycle times and efficiency. The operator experiences a more productive machine without losing the precision of the machine’s controls. Robust Design The longer arm and boom of the material handler version and the goose-neck arm and straight boom of the scrap loader version have been designed for optimal performance in material handling and scrap loading applications. The undercarriage of both versions is built with thicker steel and features additional guarding to protect undercarriage components when working in rough scrap and waste handling environments. Greater Feature Standardization CASE D Series excavators now offer more standard features than any previous CASE crawler excavator. This includes oil sample ports for quick sampling of engine and hydraulic oils and an easy pattern selector for the operator’s preference of ISO or SAE controls. Each D Series machine features a fully adjustable operator station anchored by a standard heated air-ride seat and joystick controls that allow for smooth performance. The machines also feature best-in-class cab space, excellent visibility, and a pressurized and iso-mounted
cab that keeps noise and vibration down. A standard Bluetooth radio gives operators hands-free functionality that further improves the operator experience. A standard rearview camera feeds a 7-inch widescreen monitor that also provides operators with real-time access to important performance parameters, including fuel consumption, operating hours and machine information. Light it Up Each machine is available with a new (optional) LED working light package that provides illumination similar to sunlight – and more than three-times brighter than halogen – allowing contractors to work around the clock. The LED package includes six LED lights (two front, two rear and one on each side) and a side-view camera. CASE ProCare All CASE D Series excavators are covered under CASE ProCare – a suite of product assurances that includes a three-year Advanced CASE SiteWatch™ telematics subscription, a three-year/3,000-hour full-machine factory warranty, and a three-year/3,000-hour planned maintenance contract. ProCare allows business owners to invest in new equipment while helping to make owning and operating costs predictable for the first three years of lease or ownership. For more information on the CX290D models as well as the entire lineup of CASE D Series excavators, visit CaseCE.com. Cc
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ADVERTISER INDEX
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Clairemont Equipment . . . . . . . . . . . . . . 30
Quinn CAT . . . . . . . . . . . . . . . . . . . . . . . . . 2
Coastline Equipment . . . . . . . . . . . . . . . . 3
RDO Equipment Co. . . . . . . . . . . . . . . . . . 5
Coastline Equipment Crane Div. . . . . . 22
Savala Equipment Rentals . . . . . . . . . . . 9
FMG, Grinding & CIR / Graniterock . . . 25
Scott Equipment . . . . . . . . . . . . . . . . . . . 22
Hawthorne CAT . . . . . . . . . . . . . . . . . . . . 2
Sonsray Machinery . . . . . . . . . . . . . . . . 31
Heavy Equipment Rentals . . . . . . . . . . . 15
Trench Shoring Company . . . . . . . . . . . 19
Irontrac Heavy Equipment . . . . . . . . . . 27
UB Equipment Corp. . . . . . . . . . . . . . . . 23
Nixon-Egli Equipment Co . . . back Cover
Volvo Construction Equip. & Svcs. . . . 21
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