Paccar To Purchase Truck Maker In Netherlands For $543 Million

In a grand stroke before his year-end departure, Paccar Chairman Charles Pigott said today that the company he has run for three decades is making a major acquisition in Europe.

Bellevue-based Paccar will pay $543 million to acquire DAF Trucks, a Netherlands company. Based on sales, Paccar will grow by about 40 percent as a result. Had the companies been combined in 1995, sales would have been $6.3 billion.

Pigott, who became Paccar's chief executive officer in 1967, said in May he would retire as chairman and CEO on Dec. 31. In July, Paccar said Charles Pigott's son Mark would succeed him.

"This offer demonstrates Paccar's commitment to being a global leader in the heavy-duty commercial truck market," Charles Pigott said. "Both companies share a common business philosophy, i.e., building the highest-quality products in a cost-effective manner to satisfy customers' transportation requirements."

Trading in Paccar stock picked up significantly in the past two weeks. Trading at $47.375 on the Nasdaq National Market System, the shares suddenly vaulted on heavy volume to as much as $54.75 before leveling off to close Friday at $51.125. The stock was off $1.875 to $49.25 in late trading today.

Paccar produced 54,000 trucks last year. DAF sold more than 25,000 and was the exclusive European distributor of Britain's Leyland medium-truck builder.

The deal needs DAF shareholder approval, which should not be difficult. Nearly 40 percent of DAF's shares are held by the Dutch government, the result of the company's 1993 bankruptcy. DAF has been profitable in recent periods.

DAF will retain its present management, employees and production facilities, the companies said. DAF will operate as an independent subsidiary.

Pigott said a number of efficiencies will enhance profits. Each company is expected to benefit from the other's strengths.

Paccar and DAF share many suppliers, raising the prospect of savings from integrating purchasing requirements. Paccar is considered a leader in designs resulting in fuel economy and enhanced driver comfort. DAF features a broad range of trucks emphasizing comfort and quality.