Super Products to Become Part of Alamo Group
February 26, 2014
Alamo Group Inc. (NYSE: ALG) announced that it has entered into an agreement to acquire the operating units of Specialized Industries LP. This includes the businesses of Super Products LLC, Wausau-Everest LP and Howard P. Fairfield LLC.
Super Products is a manufacturer of vacuum trucks and related equipment, parts and service, which is complementary to Alamo’s Vacall operation. Wausau-Everest is a manufacturer of snow removal equipment, which is complementary to Alamo’s Tenco and Henke operations. And, Howard P. Fairfield is a dealer/distribution operation primarily in the New England area. Together the three operations had net sales of approximately $139 million in the fiscal year ending Dec. 31, 2013. Total consideration for the purchase is approximately $186 million, subject to certain adjustments.
Super Products and Wausau Everest are based in New Berlin, Wis., and Howard P. Fairfield is based in Skowhegan, Maine. Specialized president and CEO Rod Winterwill continue as head of the operations, which, upon completion of the transaction, will become part of Alamo’s North American Industrial Division, led by Jeff Leonard.
Alamo Group president and CEO Ron Robinson commented, “These are excellent, well run operations that complement Alamo’s existing equipment lines. This acquisition will broaden our product offering and enhance our market position in both vacuum trucks and snow removal which are areas we have targeted for expansion. This is a very positive move for our Company.”
In anticipation of this event, Alamo is expanding its revolving credit facility and increasing its line of credit from $100 million to $250 million to accommodate this acquisition and meet the ongoing needs of the combined entities.
Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for right-of-way maintenance and agriculture. Its products include truck- and tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, pothole patchers, excavators, vacuum trucks, agricultural implements and related after-market parts and services. The company, founded in 1969, has approximately 2,540 employees and operates 18 manufacturing plants in North America and Europe. The corporate offices of Alamo Group Inc. are located in Seguin, Texas, and the headquarters for the its European operations are located in Salford Priors, England.