One of the world’s largest trenchless technology companies has been acquired for an estimated US$700 million.
On 15 February, Toro announced it has entered into a definitive agreement to acquire Charles Machine Works, the parent company of several trenchless brands, including Ditch Witch.
The agreement, worth US$700 million in cash subject to certain adjustments set forth in the definitive agreement, transaction is subject to regulatory approvals and other closing conditions.
In addition to Ditch Witch, Charles Machines Works’ assets include Subsite, HammerHead Trenchless, American Augers and Trencor.
“The addition of Charles Machine Works will further strengthen our portfolio of market-leading brands supported by talented employees, a commitment to innovation, a best-in-class dealer network and longstanding customer relationships,” said Toro Chair and CEO Richard M. Olson.
“As an organisation, Charles Machine Works aligns well with and will contribute to our own strategic priorities of profitable growth, operational excellence and empowering people.
“The company expands our business in a meaningful way in an adjacent category we know well through our own specialty construction business and in a market that is attractive given the potential for growth in addressing both aging infrastructure that is currently in place and new infrastructure that will be needed to support next generation technologies like 5G.”
Charles Machine Works CEO Rick Johnson said the company’s success could be attributed to hard work and a commitment to developing innovative solutions.
“From developing the world’s first service line trencher in Perry, Oklahoma, to today’s robust Ditch Witch dealer network, our family of companies is well-positioned to join Toro’s family of brands,” he said.
“We look forward to building upon our founder’s legacy of best-in-class offerings in the expanding underground construction market.”
According to Toro, the acquisition will be finalised before the end of the third fiscal quarter of 2019.
For more information visit the Charles Machine Works website.
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