Tag Archive for 'TORO'

The Toro Company to Acquire The Charles Machine Works, Inc. 

The Toro Company to Acquire The Charles Machine Works, Inc. 

Parent Company of a Strong Portfolio of Underground Construction Brands 

Including Market-Leading Ditch Witch 

The Toro Company (NYSE: TTC) today announced that it has entered into a definitive agreement to acquire privately-held The Charles Machine Works, Inc., an Oklahoma corporation and the parent company of Ditch Witch and several other leading brands in the underground construction market, for $700 million in cash subject to certain adjustments set forth in the definitive agreement. The transaction is subject to regulatory approvals and other customary closing conditions and is currently anticipated to close before the end of Toro’s fiscal 2019 third quarter. More detailed information regarding the transaction is included in an investor presentation available at www.thetorocompany.com.

Headquartered in Perry, Oklahoma, Charles Machine Works designs, manufactures and sells a range of products to cover the full life-cycle of underground pipe and cable, including horizontal directional drills, walk and ride trenchers, utility loaders, vacuum excavators, asset locators, pipe rehabilitation solutions and after-market tools. The company, known as “The Underground Authority” for their deep understanding of the structures and systems in those markets, and the most important needs of underground construction professionals, generated calendar year 2018 revenues of approximately $725 million.

“The addition of Charles Machine Works will further strengthen our portfolio of market-leading brands supported by talented employees, a commitment to innovation, a best-in-class dealer network and long-standing customer relationships,” said Richard M. Olson, Toro’s chairman and chief executive officer. “As an organization, Charles Machine Works aligns well with and will contribute to our own strategic priorities of profitable growth, operational excellence and empowering people. The company expands our business in a meaningful way in an adjacent category we know well through our own specialty construction business and in a market that is attractive given the potential for growth in addressing both aging infrastructure that is currently in place and new infrastructure that will be needed to support next-generation technologies like 5G.” 

“Culturally, our two organizations are very well aligned and, in our past experience, that has been essential to the success of a business combination like this. We share similar people values, performance expectations, business models focused on innovation, brand and channel, and strong community ties. With its rich multigenerational family legacy, commitment to its employees and market leadership position, we have respected and admired Charles Machine Works for a long time. We were excited when joining forces became a possibility, and we know that both companies will be stronger together.”

“Our success is the result of years of hard work and an unwavering commitment to developing innovative solutions for customers,” said Rick Johnson, Charles Machine Works chief executive officer. “From developing the world’s first service line trencher in Perry, Oklahoma, to today’s robust Ditch Witch dealer network, our family of companies is well-positioned to join The Toro Company’s family of brands. We look forward to building upon our founder’s legacy of best-in-class offerings in the expanding underground construction market.”

Toro expects to finance the transaction with a combination of cash on hand and debt, including from additional financing arrangements and borrowings under its existing credit facility. The all-cash purchase price of $700 million represents a multiple of approximately eight times Charles Machine Works’ calendar year 2018 EBITDA, including $30 million of anticipated annual run-rate cost synergies phased in over three years, that Toro intends to achieve through opportunities in purchasing, manufacturing best practices and administrative efficiencies. Toro expects the transaction to be immediately accretive to EPS excluding purchase accounting adjustments and transaction related expenses.

J.P. Morgan Securities LLC acted as financial advisor to Toro and Fox Rothschild LLP and Latham & Watkins, LLP acted as Toro’s legal counsel. Bank of America Merrill Lynch and J.P. Morgan Chase Bank, N.A. have provided committed debt financing to Toro for the transaction. McAfee & Taft A Professional Corporation, acted as Charles Machine Works’ legal counsel.

 

On The Right Track

Rick Rodier Named Vice President of Toro’s Sitework Systems Business

vcsprasset_521302_84610_a0d18d36-611e-4b05-9f5e-7bb7fd656cde_0Proven track record of success key to Rodier’s appointment

The Toro Company has named Rick Rodier vice president of Toro’s Sitework Systems Business, after previously serving as general manager.

In his new position, Rodier will continue to manage the day-to-day operations of the Sitework Systems Business, in addition to taking a more active role in strategic planning for The Toro Company as part of the executive management team.

rick_rodier“Rick continues to be an excellent leader with the Sitework business, and we are excited to recognize him in this expanded opportunity,” says Rick Olson, president and CEO of The Toro Company. “Rick’s knowledge of the construction and rental markets has been key to Toro’s success and beneficial to the industry as a whole. We look forward to working with Rick in his new position to further grow our position in the construction and rental spaces.”

Rodier has been with Toro since 1987 and has held a variety of operational, marketing and business management roles. He was named general manager of Toro’s Landscape Contractor Business in 2004 and then appointed to head up Toro’s new Sitework Systems Business in 2009. During his tenure at Toro, he has been instrumental in a number of key company initiatives that have driven growth for the Sitework Business and the company.

Earlier this year, Rodier was named the 2017 chairperson for The International Construction and Utility Equipment Exposition (ICUEE), and also serves as a director on the Construction Equipment (CE) Sector Board of AEM. Rodier holds a Bachelor of Business Administration (B.B.A.) in Business and Economics from Hamline University and an MBA from The University of St. Thomas.

Rodier officially assumed his duties as vice president of the Sitework System Business on October 12, 2016.

About The Toro Company
The Toro Company (NYSE: TTC) is a leading worldwide provider of innovative solutions for the outdoor environment including turf, snow and ground engaging equipment, and irrigation and outdoor lighting solutions. With sales of $2.4 billion in fiscal 2015, Toro’s global presence extends to more than 90 countries. Through constant innovation and caring relationships built on trust and integrity, Toro and its family of brands have built a legacy of excellence by helping customers care for golf courses, landscapes, sports fields, public green spaces, commercial and residential properties and agricultural fields. For more information, visit www.toro.com.

The Right Equipment Makes the Biggest Impact

Right Equip Biggest Impact

Toro Continues to Expand Underground Dealer Network

home_logoToro Broadens Distribution in North America with Two New Dealers

The Toro Company is pleased to welcome two additional equipment dealers to their expanding distribution network. The new dealers will carry the full line of Toro underground equipment, including directional drills, compact utility loaders, trenchers, vibratory plows and stump grinders.

Eagle Power & Equipment, based in Montgomeryville, Pennsylvania is one of the new underground dealers. For over 40 years, Eagle Power & Equipment has represented major equipment manufacturers in the tri-state area and has a strong focus on reliable equipment and exceptional customer service.

Indianapolis-based Best Equipment will also carry the full line, and has been providing quality equipment solutions to contractors in Indiana, Ohio and Kentucky since 1917. Also providing their customers with a high level of support, Best Equipment’s core values match up with those of The Toro Company.

“It’s been a pleasure to work with these two new organizations, and we are thrilled to welcome them to the Toro underground family,” explains Butch Greeninger, director of sales for The Toro Company. “By forming strategic partnerships with dealers whose core values align closely with our own, we can ensure that contractors are receiving the best equipment solutions available, backed by a consistent track record of exceptional service and support.”

To learn more about Eagle Power & Equipment, please visit eaglepowerandequipment.com. To learn more about Best Equipment, please visit bestequipmentco.com.

For more information on Toro’s full line of directional drills, trenchers, vibratory plows, compact utility loaders and stump grinders, visit www.toro.com/underground. To learn more about the newest underground dealers, or Toro’s distribution network, visit www.toro.com/locator.

About The Toro Company

The Toro Company (NYSE: TTC) is a leading worldwide provider of innovative solutions for the outdoor environment including turf, snow and ground engaging equipment, and irrigation and outdoor lighting solutions. With sales of $2.2 billion in fiscal 2014, Toro’s global presence extends to more than 90 countries.  Through constant innovation and caring relationships built on trust and integrity, Toro and its family of brands have built a legacy of excellence by helping customers care for golf courses, landscapes, sports fields, public green spaces, commercial and residential properties and agricultural fields. For more information, visit www.toro.com