TORO TO ACQUIRE VENTRAC
Feb. 3, 2020
Source: Toro news release
Bloomington, Minnesota -- The Toro Company (NYSE: TTC) today announced that it has entered into an agreement to acquire privately-held Venture Products, Inc., the manufacturer of Ventrac-branded products. The transaction is subject to regulatory approvals and other customary closing conditions, and is currently anticipated to close before the end of The Toro Company's fiscal 2020 second quarter.
Based in Orrville, Ohio, Ventrac is a leading manufacturer of articulating turf, landscape, and snow and ice management equipment for the grounds, landscape contractor, golf, municipal and rural acreage markets. With a combination of power and maneuverability, Ventrac products are designed to enable the operator to use the equipment in a variety of settings with ease. Ventrac machines are trusted by customers for their hillside capabilities, their light footprint in soft turf conditions, and their versatility with multi-season attachments to tackle a variety of applications. For calendar year 2019, Ventrac generated net sales of approximately $100 million.
"Ventrac is well recognized in the industry for its market-leading innovation and commitment to meeting the diverse needs of customers," said Richard M. Olson, The Toro Company's chairman and chief executive officer. "This acquisition supports our growth strategy in the professional market with the addition of a strong brand and expanded product offering to customers in the turf, landscape, and snow and ice maintenance categories. We have long respected and admired the Ventrac team, and we look forward to helping them grow on the successful foundation they have built in Orrville, Ohio."
"We are excited to become a part of The Toro Company and its family of leading brands," said Dallas Steiner, chief executive officer of Venture Products, Inc. "The Toro Company is committed to a culture that aligns with our employee values, has a rich history of success in the marketplace, and a proven track record of growing their brands. By joining with The Toro Company, it allows us to continue to serve our customers with authentic experiences and trusted products."
The Toro Company will purchase Venture Products, Inc. for $167.5 million in cash, subject to certain adjustments. The Toro Company expects to finance the transaction by borrowing under its existing revolving credit facility.