The Toro Company announced the successful completion of its acquisition of Tornado Infrastructure Equipment Ltd.
Tornado is a leading manufacturer in hydrovac excavation solutions for underground construction, power transmission, and energy markets.
The acquisition expands The Toro Company's innovative construction product portfolio and capitalizes on accelerated growth in vacuum excavation.
Acquisition Details
The purchase price for Tornado Infrastructure Equipment Ltd. was $279 million (CAD), financed through debt and additional financial arrangements.
Financial Expectations
The transaction is expected to be neutral to adjusted earnings per share in the first year and increasingly accretive thereafter.
Synergies and Revenue
Annual run-rate cost synergies of $3 million (USD) over three years are anticipated through purchasing and manufacturing efficiencies, with additional revenue synergies expected.
- The acquisition strengthens The Toro Company's leadership in underground construction.
- It positions The Toro Company to capture a greater share of the rapidly growing infrastructure space and deliver sustained value to shareholders.
- The combined commitment to innovation and operational excellence is expected to enhance the company's position in the industry.
The acquisition of Tornado Infrastructure Equipment Ltd. marks a strategic move for The Toro Company to expand its market reach and reinforce its industry leadership.