Red Iron Acceptance, LLC, provides expanded financing capabilities
and improves Toro’s working capital position
BLOOMINGTON, Minn.--(BUSINESS WIRE)--Aug. 13, 2009--
The Toro Company (NYSE: TTC) today announced the creation of a new joint
venture with TCF Inventory Finance, Inc. (TCFIF), an indirect subsidiary
of TCF Financial Corporation (NYSE: TCB). Under the name Red Iron
Acceptance, LLC, the new commercial finance entity will provide U.S.
distributors and dealers and select Canadian distributors of the Toro
and Exmark brands with a reliable, cost-effective source of floor plan
and open account financing. In conjunction with the joint venture
TCFIF’s affiliate, TCF Commercial Finance Canada, Inc., will provide
floor plan and open account financing to dealers located in Canada.
“Ready access to cost-effective financing remains at the forefront of
our customers’ concerns,” said Mike Hoffman, chairman and CEO of The
Toro Company. “This venture leverages the complementary strengths of two
great companies to offer our channel partners the inventory financing
they need to support their businesses. For Toro, it further enables us
to free up working capital to drive future growth and innovation, and
deliver increased shareholder value.”
“The lawn and garden industry is a key area that we have targeted in our
growth plan,” said William A. Cooper, chairman and CEO of TCF Financial
Corporation. “This alliance, with an industry leader like Toro, further
demonstrates our commitment to the industry.”
Customer support services for Red Iron Acceptance will be located at
Toro’s Bloomington, Minnesota, headquarters with “back office”
operations housed at TCFIF’s offices in Hoffman Estates, Illinois.
Leadership for the new entity will be provided by Tom Evans, who will
serve as general manager. Evans has extensive experience in the
inventory finance business, most recently as senior relationship manager
for GE Commercial Distribution Finance. Executive oversight for Red Iron
Acceptance will be provided by a management committee comprised of four
executives from each of The Toro Company and TCFIF.
Currently, commercial inventory financing is offered to Toro and Exmark
distributors and dealers through the Toro Credit Company and a third
party financing company. Later this year, Red Iron Acceptance is
expected to replace the current floor plan financing provided by both
parties. The new entity will service nearly 3,500 channel partners
serving the golf, sports field, municipal, landscape contractor and
residential markets.
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 2008, Toro’s global presence extends to more than 140 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.thetorocompany.com.
About TCF Inventory Finance
TCFIF (www.tcfif.com)
offers a full range of inventory financing solutions to retailers in the
consumer electronics and household appliances industries and the lawn
and garden industry throughout the United States and Canada. TCFIF is an
indirect subsidiary of TCF Financial Corporation (NYSE: TCB) (www.tcfbank.com),
a Wayzata, Minnesota-based national financial holding company with $17.5
billion in total assets. TCF has 444 banking offices in Minnesota,
Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South
Dakota, providing retail and commercial banking services. TCF also
conducts commercial leasing and equipment finance business in all 50
states.
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 unemployment and
weakened consumer confidence; the threat of further 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,
including steel, resins and other commodities; 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 markets, including the golf market; 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 goals for our current three-year growth, profit and asset management
initiative called “GrowLean” which is intended to improve our revenue
growth, after-tax return on sales and working capital efficiency; our
increased dependence on international sales and the risks attendant to
international operations; 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; the costs and effects of
changes in tax, fiscal, government and other regulatory policies,
including rules relating to environmental, health and safety matters;
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; the occurrence of litigation or claims, including the
previously disclosed pending litigation against the company and other
defendants that challenges the horsepower ratings of lawnmowers, of
which the company is currently unable to assess whether the litigation
would have a material adverse effect on the company’s consolidated
operating results or financial condition, although an adverse result
might be material to operating results in a particular reporting period.
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:
John
Wright, 952-887-8865
Director, Investor Relations
invest@toro.com
or
Media
Relations:
Branden Happel, 952-887-8930
Manager, Public
Relations
pr@toro.com
