ALAMO GROUP INC. TO ACQUIRE PETERSEN INDUSTRIES, EXPANDING ITS INDUSTRIAL EQUIPMENT PRODUCT OFFERING

Core Viewpoint - Alamo Group Inc. has signed a definitive agreement to acquire Petersen Industries, Inc. for a purchase price of $166.5 million, which is expected to enhance Alamo's product offerings and market position in the industrial equipment sector [1][3]. Group 1: Acquisition Details - The acquisition price of $166.5 million is subject to customary post-closing adjustments and will be financed through cash on hand and Alamo Group's credit facility [1]. - When accounting for expected tax benefits, the effective purchase price is approximately $150 million, representing about 7.9 times Petersen's EBITDA [1]. - The transaction is anticipated to close in the first quarter of 2026, pending regulatory approval and customary closing conditions [3]. Group 2: Company Background - Petersen Industries is a market leader in truck-mounted grapple loader equipment, primarily serving governmental customers for bulky waste collection, with annual revenue of approximately $75 million in 2024 [2]. - Founded over 65 years ago, Petersen has been recognized for its innovative contributions to the bulky waste collection industry [2]. Group 3: Strategic Fit and Future Outlook - The acquisition aligns with Alamo Group's strategy of acquiring profitable companies with innovative product portfolios that serve stable and growing markets [3]. - Alamo Group expects to unlock significant cost savings and revenue growth by integrating Petersen into its supply chain and dealer networks [3]. - Petersen's products are expected to complement Alamo's existing offerings, enhancing the company's growth and margins while providing recurring revenue from aftermarket parts and services [3].