The Toro Company announced Friday (Jan. 14) it acquired privately-held Intimidator Group, based in Batesville, Arkansas, in a deal valued at $400 million.
The Intimidator Group designs and manufactures Spartan Mowers, a professional line of zero-turn mowers sold through an established dealer network primarily in the southern U.S. to rural markets and large acreage customers. Intimidator Group also designs and manufactures a line of side-by-side utility vehicles that perform well in tough terrains.
The purchase price was $400 million, which was paid with a combination of cash on hand and short-term borrowings under the company’s existing revolving credit facility, according to a Toro Company press release.
“Our success and growth is the result of our dedicated team of employees, dealers and supply partners for which we are truly thankful and excited to be taking this next step in our journey together,” said Robert and Becky Foster, owners of Intimidator Group. “The Toro Company has a rich history and proven track record of growing brands with the resources to fuel our future growth. With a shared commitment to furthering innovation, serving customers and supporting our people and communities, we look forward to joining The Toro Company and continuing to provide best-in-class products and service to our customers.”
For calendar year 2021, Intimidator Group net sales were approximately $200 million.
The transaction has already received customary regulatory approvals. The Toro Company expects this acquisition to be modestly accretive to fiscal 2022 adjusted earnings excluding transaction and integration expenses.
“The addition of Spartan Mowers to our portfolio strategically positions us to be an even stronger player in the large and rapidly growing zero-turn mower market,” Toro Company Chairman and CEO Richard Olson said. “Spartan’s product lineup complements our innovative Exmark and Toro branded equipment and provides unique opportunities to further leverage technology and design, procurement and manufacturing efficiencies. We are confident the combined efforts of our teams will help advance our strategic priorities while providing unparalleled products, technologies and service to our customers. This move also reinforces our commitment to disciplined capital deployment, including prudent investments in our business, strategic acquisitions, dividend growth and share repurchases, all of which position us to deliver compelling shareholder returns long-term.”
Bloomington, Minn.-based The Toro Company (NYSE: TTC) is a worldwide provider of outdoor equipment and products with sales of $4 billion.
The company’s shares closed trading on Friday at $98.62. Its stock has traded as low as $92.62 per share and as high as $118.13 per share over the last year.