Product lines provide entry into new markets for global growth
BLOOMINGTON, Minn.--(BUSINESS WIRE)--Feb. 10, 2012--
The Toro Company (NYSE:TTC) announced today that it has acquired certain
utility and underground product assets of Astec Underground, Inc., a
wholly-owned subsidiary of Astec Industries, Inc. (NASDAQ: ASTE). Terms
of the transaction were not disclosed.
Through the acquisition, Toro has acquired Astec Underground’s equipment
line of vibratory plows, trenchers and horizontal directional drills for
the underground utilities market. Typically used in the installation,
repair and replacement of utilities with minimal impact on surrounding
landscapes or structures, these products are designed for power
distribution, telecommunications, utility companies, and landscape and
irrigation contractors.
“This acquisition helps further grow Toro’s product presence in the
landscape and ground engaging markets, along with providing access to a
new category close to our core businesses,” said Rick Rodier, general
manager of Toro’s Sitework Systems Business. “The underground utilities
space represents a market in which we don’t compete today, but one we
believe provides great opportunity to drive global share growth in these
new categories.”
Based in Chattanooga, Tennessee, Astec Industries, Inc. is a
manufacturer of specialized equipment for asphalt road building,
aggregate processing, pipeline and utility trenching, and wood
processing. The products Toro is acquiring, which does not include
Astec’s Trencor product line, are manufactured at the Astec Underground
facility in Loudon, Tennessee.
About The Toro Company
The Toro Company (NYSE: TTC) is a leading worldwide provider of turf and
landscape maintenance equipment, and precision irrigation systems. With
sales of nearly $1.9 billion in fiscal 2011, Toro’s global presence
extends to more than 90 countries through its reputation of world-class
service, innovation and turf expertise. Since 1914, the company has
built a tradition of excellence around a number of strong brands to help
customers care for golf courses, sports fields, public green spaces,
commercial and residential properties, and agricultural fields. More
information is available at www.toro.com.
About Astec Industries, Inc.
Astec Industries, Inc. (www.astecindustries.com)
is a manufacturer of specialized equipment for building and restoring
the world's infrastructure. Astec's manufacturing operations are divided
into four primary business segments: asphalt production equipment,
mobile asphalt paving equipment, aggregate processing and mining
equipment, and underground boring, directional drilling and trenching
equipment. Additionally, the Other Group contains one subsidiary that
manufactures equipment used for wood processing and recycling and one
that is a company-owned dealership located in Australia.
Safe Harbor
Statements made in this news release, which are forward-looking, are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve risks
and uncertainties that could cause actual results to differ materially
from those projected or implied. These uncertainties include factors
that affect all businesses operating in a global market as well as
matters specific to Toro. Particular risks and uncertainties that may
affect the company’s operating results or overall financial position at
the present include: slow or negative growth rates in global and
domestic economies, resulting in rising or persistent unemployment and
weakened consumer confidence; the threat of terrorist acts and war,
which may result in contraction of the U.S. and worldwide economies;
drug cartel-related violence, which may disrupt our production
activities and maquiladora operations based in Juarez, Mexico;
fluctuations in the cost and availability of raw materials and
components, including steel, engines, hydraulics, resins and other
commodities and components; fluctuating fuel and other costs of
transportation; the impact of abnormal weather patterns, natural
disasters and global pandemics; the level of growth or contraction in
our key markets; government and municipal revenue, budget and spending
levels, which may negatively impact our grounds maintenance equipment
business in the event of reduced tax revenues and tighter government
budgets; dependence on The Home Depot as a customer for the residential
segment; elimination of shelf space for our products at retailers;
inventory adjustments or changes in purchasing patterns by our
customers; market acceptance of existing and new products; increased
competition; our ability to achieve the revenue growth, operating
earnings and employee engagement goals of our multi-year employee
initiative called “Destination 2014”; our increased dependence on
international sales and the risks attendant to international operations
and markets, including political, economic and/or social instability in
the countries in which we manufacture or sell our products resulting in
contraction or disruption of such markets; credit availability and
terms, interest rates and currency movements including, in particular,
our exposure to foreign currency risk; our relationships with our
distribution channel partners, including the financial viability of
distributors and dealers; our ability to successfully achieve our plans
for and integrate acquisitions and manage alliances or joint ventures,
including Red Iron Acceptance, LLC; the costs and effects of changes in
tax, fiscal, government and other regulatory policies, including rules
relating to environmental, health and safety matters, and Tier 4
emissions requirements; unforeseen product quality or other problems in
the development, production and usage of new and existing products; loss
of or changes in executive management or key employees; ability of
management to manage around unplanned events; our reliance on our
intellectual property rights and the absence of infringement of the
intellectual property rights of others; and the occurrence of litigation
or claims. In addition to the factors set forth in this paragraph,
market, economic, financial, competitive, legislative, governmental,
weather, production and other factors identified in Toro's quarterly and
annual reports filed with the Securities and Exchange Commission, could
affect the forward-looking statements in this press release. Toro
undertakes no obligation to update forward-looking statements made in
this release to reflect events or circumstances after the date of this
release.
Source: The Toro Company
The Toro Company
Investor Relations
Kurt
Svendsen, 952-887-8630
Managing Director, Corporate Communications
and Investor Relations
invest@toro.com
or
Media
Relations
Branden Happel, 952-887-8930
Senior Manager,
Public Relations
pr@toro.com
