ALAMO GROUP INC. ANNOUNCES ACQUISITION OF RING-O-MATIC

Rhea-AI Summary

Alamo Group Inc. (NYSE: ALG) has completed the acquisition of Ring-O-Matic, Inc., a leading industrial vacuum excavation equipment manufacturer based in Pella, Iowa. The acquisition was funded using existing cash reserves and is subject to standard net working capital closing adjustments.

Ring-O-Matic, established in 1960, specializes in manufacturing trailer-mounted and custom truck-mounted excavation and vacuum units for applications including hydro excavation, utility infrastructure digging, trenching, sewer jetting, and storm drain cleaning. The company reported annual revenue of approximately $25 million in 2024.

The strategic acquisition aligns with Alamo Group's market share expansion strategy through successful business acquisitions that complement their current product offerings. The company expects to achieve both cost and revenue synergies through effective integration of Ring-O-Matic's product portfolio into their existing lineup.

Positive

• Ring-O-Matic generated $25 million in revenue in 2024
• Acquisition funded through existing cash on hand, indicating strong liquidity
• Expected to achieve both cost and revenue synergies
• Expands product portfolio with complementary vacuum excavation equipment
• Acquisition of an established company with over 60 years of market presence

Negative

• Purchase price not disclosed, limiting ability to assess acquisition value
• Subject to working capital closing adjustments that could affect final transaction terms

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SEGUIN, Texas, June 30, 2025 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) today announced that it has completed the acquisition of Ring-O-Matic, Inc., a leading provider of industrial vacuum excavation equipment.  The purchase was funded with existing cash on hand and is subject to customary net working capital closing adjustments.

Since its founding in 1960, Ring-O-Matic, based in Pella, Iowa, has built a well-regarded and highly respected name for itself in the marketplace.  The company is known for manufacturing high-quality trailer-mounted and custom truck-mounted excavation and vacuum units that perform essential tasks such as hydro excavation, safe digging near and around utility infrastructure, trenching, sewer jetting, and storm drain cleaning, among others.  The company achieved annual revenue in 2024 of approximately $25 million.

Jeff Leonard, Alamo Group's President and Chief Executive Officer, stated "We are very pleased to have completed this acquisition and to welcome Ring-O-Matic as a member of the Alamo Group family of companies.  This acquisition nicely ties to our strategy of developing market share through the acquisition of successful businesses that enhance our current product offering. We believe Ring-O-Matic's trailer mounted excavator and vacuum product portfolio will fit very nicely into our current product lineup and will allow us to achieve both cost and revenue synergies as we effectively integrate them into our organization."

Mr. Brian Metcalf, CEO and owner of Ring-O-Matic, said "Since purchasing Ring-O-Matic in 2017, my team of highly qualified and dedicated people helped me build upon the strong foundations of the company to accelerate growth and create ongoing success. I fully anticipate the company will continue on its current path producing high-quality and innovative products while achieving even greater success under Alamo Group ownership."  

About Alamo Group

Alamo Group is a leader in the design, manufacture, distribution, and service of high-quality equipment for vegetation management, infrastructure maintenance 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, forestry equipment and related after-market parts and services. The Company, founded in 1969, has approximately 3,750 employees and operates 27 plants in North America, Europe, Australia, and Brazil as of March 31, 2025.

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: adverse economic conditions which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, unanticipated acquisition results, increasing costs due to inflation, disease outbreaks, geopolitical risks, including tariffs, trade wars and the effects of the war in Ukraine and the Middle East, 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.

View original content:https://www.prnewswire.com/news-releases/alamo-group-inc-announces-acquisition-of-ring-o-matic-302494865.html

SOURCE Alamo Group Inc.

FAQ

What company did Alamo Group (NYSE: ALG) acquire in June 2025?

Alamo Group acquired Ring-O-Matic, Inc., a leading industrial vacuum excavation equipment manufacturer based in Pella, Iowa.

How much revenue did Ring-O-Matic generate before the Alamo Group acquisition?

Ring-O-Matic generated approximately $25 million in annual revenue in 2024.

How did Alamo Group finance the Ring-O-Matic acquisition?

The acquisition was funded using existing cash on hand and is subject to customary net working capital closing adjustments.

What products does Ring-O-Matic manufacture?

Ring-O-Matic manufactures trailer-mounted and custom truck-mounted excavation and vacuum units used for hydro excavation, utility infrastructure digging, trenching, sewer jetting, and storm drain cleaning.

What synergies does Alamo Group expect from the Ring-O-Matic acquisition?

Alamo Group expects to achieve both cost and revenue synergies through effective integration of Ring-O-Matic's product portfolio into their existing lineup.