Acquisition expands product portfolio with leader of articulating turf, landscape and snow equipment
BLOOMINGTON, Minn.--(BUSINESS WIRE)--Jan. 21, 2020--
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.
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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Source: The Toro Company
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