SEGUIN, Texas, Feb. 8, 2017 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) announced that it has entered into an agreement to acquire substantially all of the assets of Old Dominion Brush Company, Inc. ("ODB"), a privately held company. ODB manufactures and sells replacement brooms for street sweepers and leaf vacuum units primarily sold to municipalities, contractors and commercial landscape markets. ODB reported unaudited sales of approximately $27.7 million for the year ending December 31, 2016. Total consideration for the purchase is approximately $20 million subject to certain adjustments. The purchase is anticipated to close within 30 days.
ODB was founded in 1910 and is based in Richmond, Virginia with an assembly and warehouse operation in Kansas City, Kansas. The company is owned by the Brizzolara family and led by Tim and Duke Brizzolara who will continue managing the company upon completion of the transaction. ODB will become part of Alamo's North American Industrial Division.
Ron Robinson, Alamo Group's President and Chief Executive Officer commented, "We are pleased to have Old Dominion as part of the Alamo Group. This is a well-respected brand whose products are complementary to our existing range of infrastructure maintenance equipment and parts. We are also glad that Tim and Duke will continue to lead the company as they bring a wealth of knowledge and history to help in Alamo's ongoing development."
Tim Brizzolara, President of ODB, added, "We feel Alamo is a good partner for our company as they have a track record of maintaining the integrity of the brands they acquire and investing in their future."
The purchase price will be funded under the Company's existing and recently renewed $250 million unsecured revolving credit facility.
About Alamo Group
Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for infrastructure maintenance, agriculture and other applications. Our products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements and related after-market parts and services. The Company, founded in 1969, has approximately 2,900 employees and operates 24 plants in North America, Europe, Australia and Brazil as of December 31, 2016. The corporate offices of Alamo Group Inc. are located in Seguin, Texas and the headquarters for the Company's European operations are located in Salford Priors, England.
Forward Looking Statements
This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: market demand, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company's SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.
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SOURCE Alamo Group Inc.