Alamo Buys Morbark
Alamo buys Morbark.
Alamo Group buys Morbark from Stellex Capital for $352 million.
Morbark makes equipment and after-market parts for the forestry, recycling, tree care, sawmill, land-clearing, and biomass markets. Along with its affiliate brands, Rayco, Denis Cimaf, and Boxer Equipment, it fabricates a full line of brush chippers, stump cutters, mini skid-steers, forestry mulchers, aerial trimmers, whole tree and biomass chippers, flails, horizontal and tub grinders, sawmill equipment, material handling systems, and mulcher head attachments for excavators, backhoes, and skid-steer loaders.
Ron Robinson of Alamo said: ‘We are pleased with the prospect of having Morbark join the Alamo Group. Morbark is a well-run, profitable, and growing company in a sector that has been steadily improving. Their products expand and complement our range of vegetation maintenance equipment in an adjacent market. We are excited about the opportunities this acquisition will give Alamo, and we look to continue their existing strategic growth plan focused on product development and market expansion, supplemented with synergistic acquisitions. We also believe this acquisition will allow us to speed up Morbark’s international growth plans with Alamo’s existing presence in areas such as Europe as well as select markets such as Brazil and Australia. We believe the two companies will jointly benefit from operational synergies as well. This combination will provide both a strategic fit and scale of operations that should benefit Alamo for the long term.’
Dave Herr of Morbark said: ‘We would like to thank Stellex for recognizing Morbark’s potential and investing both time and capital in order for us to achieve our strategic vision. Together with Stellex, Morbark has achieved our strategic vision by greatly enhancing operations, implementing lean initiatives, and best-in-class manufacturing practices. These resulted in new and improved product redesigns, a significant reduction in lead times, and improved delivery performance. We are grateful for our time working with Stellex and look forward to this next chapter as part of Alamo, an ideal suitor given its operating philosophy that will allow us to keep our brands, operations, and successful momentum while further enhancing operational synergies and accelerating international growth.
This move provides many benefits for Morbark. Employees, customers, and dealers will notice no significant changes in their day-to-day work. Being part of a publicly-traded company provides long-term stability, so we can continue our investments in equipment and products to promote continued growth. All our brands have an excellent reputation in the industry and will be maintained with no changes. We will have a significant opportunity to leverage Alamo’s international presence to expand our sales and sourcing capabilities.’
David Waxman of Stellex Capital said: ‘Our investment in Morbark demonstrates our ability to transform family-run industrial equipment businesses into best-in-class providers within their industry. We would like to thank the Morbark team for their strategic vision, dedication, and execution over these past three and a half years. We are proud to have worked alongside them transforming Morbark into a leading provider of mobile industrial equipment and believe the Company is well-positioned to continue to capitalize on the strong market tailwinds within biomass recycling and tree care maintenance.’
Baird served as financial adviser to Stellex and Morbark. DLA Piper served as legal adviser.
Alamo Group buys Morbark from Stellex Capital for $352 million.
Morbark makes equipment and after-market parts for the forestry, recycling, tree care, sawmill, land-clearing, and biomass markets. Along with its affiliate brands, Rayco, Denis Cimaf, and Boxer Equipment, it fabricates a full line of brush chippers, stump cutters, mini skid-steers, forestry mulchers, aerial trimmers, whole tree and biomass chippers, flails, horizontal and tub grinders, sawmill equipment, material handling systems, and mulcher head attachments for excavators, backhoes, and skid-steer loaders.
Ron Robinson of Alamo said: ‘We are pleased with the prospect of having Morbark join the Alamo Group. Morbark is a well-run, profitable, and growing company in a sector that has been steadily improving. Their products expand and complement our range of vegetation maintenance equipment in an adjacent market. We are excited about the opportunities this acquisition will give Alamo, and we look to continue their existing strategic growth plan focused on product development and market expansion, supplemented with synergistic acquisitions. We also believe this acquisition will allow us to speed up Morbark’s international growth plans with Alamo’s existing presence in areas such as Europe as well as select markets such as Brazil and Australia. We believe the two companies will jointly benefit from operational synergies as well. This combination will provide both a strategic fit and scale of operations that should benefit Alamo for the long term.’
Dave Herr of Morbark said: ‘We would like to thank Stellex for recognizing Morbark’s potential and investing both time and capital in order for us to achieve our strategic vision. Together with Stellex, Morbark has achieved our strategic vision by greatly enhancing operations, implementing lean initiatives, and best-in-class manufacturing practices. These resulted in new and improved product redesigns, a significant reduction in lead times, and improved delivery performance. We are grateful for our time working with Stellex and look forward to this next chapter as part of Alamo, an ideal suitor given its operating philosophy that will allow us to keep our brands, operations, and successful momentum while further enhancing operational synergies and accelerating international growth.
This move provides many benefits for Morbark. Employees, customers, and dealers will notice no significant changes in their day-to-day work. Being part of a publicly-traded company provides long-term stability, so we can continue our investments in equipment and products to promote continued growth. All our brands have an excellent reputation in the industry and will be maintained with no changes. We will have a significant opportunity to leverage Alamo’s international presence to expand our sales and sourcing capabilities.’
David Waxman of Stellex Capital said: ‘Our investment in Morbark demonstrates our ability to transform family-run industrial equipment businesses into best-in-class providers within their industry. We would like to thank the Morbark team for their strategic vision, dedication, and execution over these past three and a half years. We are proud to have worked alongside them transforming Morbark into a leading provider of mobile industrial equipment and believe the Company is well-positioned to continue to capitalize on the strong market tailwinds within biomass recycling and tree care maintenance.’
Baird served as financial adviser to Stellex and Morbark. DLA Piper served as legal adviser.
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