SEGUIN, Texas, Feb. 8, 2017 /PRNewswire/ -- Alamo Group Inc.
(NYSE: ALG) announced that it has entered into an agreement to
acquire substantially all of the assets of Old Dominion Brush
Company, Inc. ("ODB"), a privately held company. ODB
manufactures and sells replacement brooms for street sweepers and
leaf vacuum units primarily sold to municipalities, contractors and
commercial landscape markets. ODB reported unaudited sales of
approximately $27.7 million for the
year ending December 31, 2016.
Total consideration for the purchase is approximately $20 million subject to certain adjustments.
The purchase is anticipated to close within 30 days.
ODB was founded in 1910 and is based in Richmond, Virginia with an assembly and
warehouse operation in Kansas
City, Kansas. The company is owned by the Brizzolara
family and led by Tim and Duke
Brizzolara who will continue managing the company upon
completion of the transaction. ODB will become part of
Alamo's North American Industrial
Division.
Ron Robinson, Alamo Group's
President and Chief Executive Officer commented, "We are pleased to
have Old Dominion as part of the Alamo
Group. This is a well-respected brand whose products are
complementary to our existing range of infrastructure maintenance
equipment and parts. We are also glad that Tim and Duke will
continue to lead the company as they bring a wealth of knowledge
and history to help in Alamo's
ongoing development."
Tim Brizzolara, President of ODB,
added, "We feel Alamo is a good
partner for our company as they have a track record of maintaining
the integrity of the brands they acquire and investing in their
future."
The purchase price will be funded under the Company's existing
and recently renewed $250 million
unsecured revolving credit facility.
About Alamo Group
Alamo Group is a leader in the design, manufacture, distribution
and service of high quality equipment for infrastructure
maintenance, agriculture and other applications. Our products
include truck and tractor mounted mowing and other vegetation
maintenance equipment, street sweepers, snow removal equipment,
excavators, vacuum trucks, other industrial equipment, agricultural
implements and related after-market parts and services. The
Company, founded in 1969, has approximately 2,900 employees and
operates 24 plants in North
America, Europe,
Australia and Brazil as of December
31, 2016. The corporate offices of Alamo Group Inc.
are located in Seguin, Texas and
the headquarters for the Company's European operations are located
in Salford Priors, England.
Forward Looking Statements
This release contains forward-looking statements that are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties, which
may cause the Company's actual results in future periods to differ
materially from forecasted results. Among those factors which could
cause actual results to differ materially are the following: market
demand, competition, weather, seasonality, currency-related issues,
and other risk factors listed from time to time in the Company's
SEC reports. The Company does not undertake any obligation to
update the information contained herein, which speaks only as of
this date.
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SOURCE Alamo Group Inc.