The Toro Company has
announced that it has entered into an agreement to acquire privately-held
Venture Products, Inc., the manufacturer of Ventrac branded products.
The transaction is
subject to regulatory approvals and other customary closing conditions, and is
currently anticipated to close before the end of The Toro Company’s fiscal 2020
second quarter.
Based in Orrville,
Ohio, Ventrac is a leading manufacturer of articulating turf, landscape, and
snow and ice management equipment for the grounds, landscape contractor, golf,
municipal and rural acreage markets.
With a combination
of power and maneuverability, Ventrac products are designed to enable the
operator to use the equipment in a variety of settings with ease. Ventrac
machines are trusted by customers for their hillside capabilities, their light
footprint in soft turf conditions, and their versatility with multi-season
attachments to tackle a variety of applications. For calendar year 2019,
Ventrac generated net sales of approximately $100 million.
“Ventrac is well
recognized in the industry for its market-leading innovation and commitment to
meeting the diverse needs of customers,” said Richard M. Olson, The Toro
Company’s chairman and chief executive officer. “This acquisition supports our
growth strategy in the professional market with the addition of a strong brand
and expanded product offering to customers in the turf, landscape, and snow and
ice maintenance categories. We have long respected and admired the Ventrac
team, and we look forward to helping them grow on the successful foundation
they have built in Orrville, Ohio.”
“We are excited to
become a part of The Toro Company and its family of leading brands,” said
Dallas Steiner, chief executive officer of Venture Products, Inc. “The Toro
Company is committed to a culture that aligns with our employee values, has a
rich history of success in the marketplace, and a proven track record of
growing their brands. By joining with The Toro Company, it allows us to
continue to serve our customers with authentic experiences and trusted
products.”
The Toro Company
will purchase Venture Products, Inc. for $167.5 million in cash, subject to
certain adjustments. The Toro Company expects to finance the transaction by
borrowing under its existing revolving credit facility.
