Acquisition expands product portfolio with
leader of articulating turf, landscape and snow equipment
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.
About The Toro Company The Toro Company (NYSE: TTC) is a
leading worldwide provider of innovative solutions for the outdoor
environment including turf and landscape maintenance, snow and ice
management, underground utility construction, rental and specialty
construction, and irrigation and outdoor lighting solutions. With
sales of $3.1 billion in fiscal 2019, The Toro Company’s global
presence extends to more than 125 countries through a family of
brands that includes Toro, Ditch Witch, Exmark, BOSS Snowplow,
American Augers, Subsite Electronics, HammerHead, Trencor, Unique
Lighting Systems, Irritrol, Hayter, Pope, Lawn-Boy and Radius HDD.
Through constant innovation and caring relationships built on trust
and integrity, The Toro Company and its family of brands have built
a legacy of excellence by helping customers care for golf courses,
sports fields, construction sites, public green spaces, commercial
and residential properties and agricultural operations. For more
information, visit www.thetorocompany.com.
About Venture Products, Inc. Venture Products, Inc., the
manufacturer of Ventrac-branded tractors and attachments, is a
premier innovator of equipment for turf and landscape grounds
management, sidewalk snow removal, and specialty grounds care
maintenance. Ventrac tractors and attachments are engineered and
manufactured in Orrville, Ohio, and sold through a network of
highly trained and authorized dealers throughout the world. Built
for performance and with quality to last, Ventrac equipment is
ideal for golf course turf management, sports fields, collegiate
campuses, residential and commercial property maintenance, public
green spaces, and agricultural uses. As a respected, well-known
global brand in the professional grounds care industry, Venture
Products, Inc. engages customers with authentic experiences and
trusted products. For more information, visit www.ventrac.com.
Forward-Looking Statements This news release contains not
only historical information, but also forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, and that are
subject to the safe harbor created by those sections. Statements
that are not historical are forward-looking and reflect
expectations and assumptions. Forward-looking statements are based
on Toro’s current expectations of future events, and often can be
identified in this release and elsewhere by using words such as
"expect," "strive," "looking ahead," "outlook," "guidance,"
"forecast," "goal," "optimistic," "anticipate," "continue," "plan,"
"estimate," "project," "believe," "should," "could," "will,"
"would," "possible," "may," "likely," "intend," "can," "seek,"
"potential," "pro forma," or the negative thereof and similar
expressions or future dates. Some of the forward-looking statements
in this release about Toro’s acquisition of Venture Products
include Toro’s anticipated timing for the closing of the
acquisition, plans for funding the acquisition consideration, and
potential for growth in the professional market. Forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from those projected or implied. The
following are some of the factors known to Toro that could cause
actual results to differ materially from what Toro has anticipated
in its forward-looking statements: delays in completing the
acquisition and the risk that the acquisition may not be completed
at all; the failure by Toro to achieve net sales, earnings and any
cost or revenue synergies expected from the acquisition or delays
in the realization thereof; delays and challenges in integrating
the business after the acquisition is completed; business
disruption during the pendency of and following the acquisition;
loss of key personnel; unanticipated liabilities or exposures for
which Toro has not been indemnified or may not recover;
infringement of intellectual property rights of others associated
with the rights acquired in the acquisition; and general adverse
business, economic or competitive conditions. For more information
regarding these and other uncertainties and factors that could
cause Toro’s actual results to differ materially from what it has
anticipated in its forward-looking statements or could otherwise
materially adversely affect its business, financial condition or
operating results, see Toro’s most recently filed Annual Report on
Form 10-K, Part I, Item 1A, “Risk Factors.” All forward-looking
statements included in this release are expressly qualified in
their entirety by the foregoing cautionary statements. Toro
undertakes no obligation to update forward-looking statements to
reflect actual results or changes in factors or assumptions
affecting such forward-looking statements. Toro advises you,
however, to consult any further disclosures in its future Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current
Reports on Form 8-K that Toro may file with or furnish to the
SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20200121005211/en/
Investor Relations Nicholas Rhoads Director, Investor
Relations (952) 887-8865, nicholas.rhoads@toro.com
Media Relations Branden Happel Senior Manager, Public
Relations (952) 887-8930, branden.happel@toro.com
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