Toro Company To Acquire Charles Machine Works Inc For $700 Mln - Quick Facts

(RTTNews) - The Toro Company (TTC) announced that it has entered into a definitive agreement to acquire privately-held The Charles Machine Works, Inc., an Oklahoma corporation and the parent company of Ditch Witch and several other leading brands in the underground construction market, for $700 million in cash.

Headquartered in Perry, Oklahoma, Charles Machine Works designs, manufactures and sells a range of products to cover the full life-cycle of underground pipe and cable, including horizontal directional drills, walk and ride trenchers, utility loaders, vacuum excavators, asset locators, pipe rehabilitation solutions and after-market tools. The company generated calendar year 2018 revenues of approximately $725 million.

Toro expects the transaction to be immediately accretive to EPS excluding purchase accounting adjustments and transaction related expenses. The company expects to finance the transaction with a combination of cash on hand and debt, including from additional financing arrangements and borrowings under its existing credit facility. The transaction is currently anticipated to close before the end of Toro's third quarter.