Toro to acquire snow and ice management business
By The Toro Company
News
Nov. 3, 2014 - The Toro Company has announced that it has entered into a
definitive agreement to acquire the BOSS professional snow and ice
management business of privately-held Northern Star Industries, Inc.
The transaction is subject to customary closing conditions, including
regulatory approvals, and currently is expected to close during Toro's
fiscal 2015 first quarter.
Based in Iron Mountain, Michigan, BOSS designs, manufactures and
sells snowplows, salt and sand spreaders, and related parts and
accessories, for light and medium duty trucks, ATVs, UTVs and loaders.
BOSS sales in 2014 are anticipated to be approximately $125 million.
"With the addition of BOSS to our existing market-leading
professional contractor businesses, we are even better positioned to
strengthen and grow our relationships with these important customers by
providing them with the innovative and durable equipment and
high-quality service they need for each season,” said Michael J.
Hoffman, Toro's chairman and chief executive officer. “We've long been
interested in the professional snow and ice management category. We are
impressed with BOSS' solid business performance and we are optimistic
about the opportunities for growth through product line expansion and in
international markets.”
“Through this acquisition, we will gain another strong professional
contractor brand, a portfolio of reliable counter-seasonal equipment,
efficient manufacturing operations and a well-established and broad
North American distribution channel for these products,” said Hoffman.
“In addition, BOSS brings a talented and experienced management team, a
passionate and dedicated team of employees and a culture of innovation
and customer service that is similar to our own.”
“As a privately-held business in a smaller community, it is essential
to us that BOSS transition to a company that not only is
well-positioned to take us to the next level but also shares our
commitment to innovation, customers, employees and the communities in
which we live and work,” said David Brule II, President of BOSS. “We are
impressed with Toro, its rich 100 year history and consistent record of
performance. Overall, it is a great fit for us. On behalf of myself and
the entire BOSS team, we look forward to the next phase of the BOSS
journey as part of the Toro family.”
The purchase price is approximately $227 million, which Toro will pay
primarily in cash except for $30 million that will be paid in the form
of a three-year unsecured promissory note. Toro plans to fund the cash
portion of the purchase price with cash on hand and borrowings under a
new five-year unsecured revolving credit facility that includes a senior
term loan. Toro expects this acquisition to be slightly accretive to
fiscal 2015 earnings.
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