Douglas Dynamics acquires TrynEx assets
By Douglas Dynamics
June 12, 2013 - Douglas Dynamics, a North American leader in the design, manufacture and sale of snow and ice control equipment for light trucks, has announced it has acquired most of the assets of TrynEx, a leader in truck mounted salt and sand spreader equipment under the brand name SnowEx. TrynEx also provides turf application and industrial attachment products under the brand names TurfEx and SweepEx.
By Douglas Dynamics
June 12, 2013 – Douglas Dynamics , a North American leader in the design,
manufacture and sale of snow and ice control equipment for light
trucks, has announced it has acquired most of the assets of TrynEx, a
leader in truck mounted salt and sand spreader equipment under the brand
name SnowEx. TrynEx also provides turf application and industrial
attachment products under the brand names TurfEx and SweepEx.
"(The) announcement is incredibly positive for both Douglas Dynamics and
TrynEx and strengthens our position as a market leader in both snow and ice
control solutions," said James L. Janik, president and CEO of Douglas Dynamics. "This transaction represents an opportunity for
Douglas Dynamics to further enhance our product portfolio and expand the
breadth and depth of our capabilities in snow and ice control, while also
exploring new growth channels across market adjacencies and expanding our reach
to new geographies."
"TrynEx is pleased to be joining
the Douglas Dynamics family and we believe this is an exciting opportunity for
our company to expand and grow as part of a larger organization," said
Chuck Truan, president of TrynEx. "Both businesses have similar core
values and serve a similar marketplace through different channels, which
provides us with opportunities to carve out new markets, leverage shared
expertise and introduce both companies' products to new audiences."
Douglas Dynamics has acquired
substantially all the assets of TrynEx for a purchase price of $26 million.
Acquired assets include TrynEx's full line of product offerings from its
SnowEx, TurfEx and SweepEx brands and access to TrynEx's network of
approximately 1,500 authorized dealers worldwide spanning 26 countries. The
acquisition of the TrynEx assets is expected to be accretive to earnings per
share on a full-year basis and free cash flow positive on a standalone basis in
Douglas Dynamics remains in a strong
financial position and is committed to its capital allocation strategy of
paying a dividend to its shareholders, paying down debt and pursuing strategic
acquisitions at disciplined valuations to add shareholder value.
The acquisition was funded through the
use of Douglas Dynamics' existing asset based revolving line of credit.
The current management of Douglas
Dynamics will remain in place and continue to lead the combined Company. The
TrynEx business will continue to operate as it does today as a division of
Douglas Dynamics, marketing its SnowEx, TurfEx and SweepEx brands under the
leadership of its current management team.
Upon completion of the deal, Douglas
Dynamics will leverage its lean manufacturing expertise to deliver enhanced
service to customers and drive synergies.