(Pictured: Ventrac snow-management equipment)
The acquisition for $167.5M of the manufacturer of Ventrac-branded products will expand Toro’s product portfolio with articulating turf, landscape and snow- and ice-management equipment for the golf, grounds and other markets.
The Toro Company 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.
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.
Venture is owned and run by the Steiner family, which had developed and made agricultural equipment and tractors before starting the Ventrac brand in 1996, the Minneapolis Star Tribune reported. The company has 325 employees and about $100 million in annual revenue.
Ventrac products are used in the turf- and grounds-management industry and known for handling tough terrain like steep hillsides and soft ground, the Star Tribune reported. The Ventrac products complement many Toro products, with the articulated design of some Ventrac tractors and implements offering additional maneuverability and the ability to handle steep hillsides. Ventrac’s versatile small-tractor platform also accepts 30 attachments that tackle a variety of jobs including snow and ice management, grass and brush mowers and a variety of specialty soil and site-preparation needs.
Toro, which outsources some of the attachments that fit its products, also picks up a manufacturer that produces its own attachments, the Star Tribune reported.
This is the largest acquisition by Toro since the company announced it was buying another private family-run company, the Charles Machine Works Inc., for $700 million in February 2019, the Star Tribune reported.
“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,” Olson added.
“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.”
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