ALAMO GROUP INC. TO ACQUIRE PETERSEN INDUSTRIES, EXPANDING ITS INDUSTRIAL EQUIPMENT PRODUCT OFFERING
Rhea-AI Summary
Alamo Group (NYSE: ALG) signed a definitive agreement to acquire Petersen Industries for a purchase price of $166.5 million, subject to customary post-closing adjustments, financed with cash on hand and availability under Alamo Group's credit facility. Adjusted for expected tax benefits, the present value purchase price is approximately $150 million, equal to ~7.9x EBITDA before expected run-rate synergies.
Petersen, based in Lake Wales, Florida, reported ~$75 million revenue in 2024 and will join Alamo's Industrial Equipment Division upon closing, which is anticipated in Q1 2026 subject to regulatory approval. The company expects the deal to be accretive to growth and margins and to provide recurring aftermarket revenue.
Positive
- Purchase price of $166.5 million agreed
- PV-adjusted price approximately $150 million
- Petersen reported $75 million revenue in 2024
- Transaction expected accretive to growth and margins
- Expected recurring aftermarket revenue from parts and services
Negative
- Purchase price subject to customary post-closing adjustments
- Deal financed with cash and credit facility availability
- Closing subject to regulatory approval and customary conditions
- Timing targeted to Q1 2026, creating near-term execution risk
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed, mostly small moves (e.g., REVG +0.34%, AGCO +0.37%, OSK -1.53%), suggesting today’s ALG news is company-specific rather than a broad sector shift.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Positive | -3.6% | Q3 2025 sales and earnings growth led by Industrial Equipment. |
| Oct 30 | Earnings call notice | Neutral | +1.0% | Announcement of timing and access details for Q3 earnings call. |
| Oct 01 | Dividend declaration | Positive | +1.3% | Regular quarterly dividend of <b>$0.30</b> per share maintained. |
| Aug 18 | CEO succession plan | Positive | -2.1% | Appointment of Robert P. Hureau as new President and CEO. |
| Aug 06 | Q2 2025 earnings | Positive | -1.2% | Strong Q2 results with Industrial Equipment growth and backlog strength. |
Recent positive fundamentals, especially earnings and strategic updates, have often been met with short-term selling pressure, while more routine or income-focused news has seen modest gains.
Over the last six months, Alamo Group has combined steady operations with strategic moves. Q2 and Q3 2025 earnings showed growing Industrial Equipment strength but were followed by modest share price declines. A CEO succession announcement in August 2025 also saw a negative reaction. In contrast, the regular $0.30 quarterly dividend and an earnings call notice in October drew small positive moves. Earlier in 2025, ALG also expanded via the Ring‑O‑Matic acquisition, reinforcing its M&A-driven growth strategy that today’s Petersen deal continues.
Market Pulse Summary
This announcement details a definitive agreement to acquire Petersen Industries for $166.5M, or roughly 7.9x EBITDA, adding about $75M of 2024 revenue to the Industrial Equipment Division. The deal follows June’s Ring‑O‑Matic acquisition, underscoring an M&A-driven expansion strategy. Investors may track closing progress into Q1 2026, integration into ALG’s supply chain and dealers, and whether expected cost and revenue synergies materialize as described.
Key Terms
ebitda financial
AI-generated analysis. Not financial advice.
Petersen is the market leader in providing high-quality grapple truck loaders to governmental end-customers for the handling of bulky waste collection. Since its founding more than 65 years ago, Petersen has been at the forefront of innovation in bulky waste collection. Petersen products have transformed how municipalities, public works departments, and private haulers handle large and difficult-to-manage waste, making the process safer, faster, and more efficient. The company, based in
Robert Hureau, Alamo Group's President and Chief Executive Officer, stated "We are very excited about the prospect of joining Petersen to the Alamo Group family of companies. This acquisition nicely ties to our strategy of acquiring profitable companies with innovative and attractive product portfolios that are market leaders serving stable, steadily growing, end-markets. We believe Petersen products will fit very nicely within our product offering, and under Alamo Group ownership we believe we can unlock significant future cost savings and revenue growth as we integrate the company into our supply chain and dealer networks and expand potential applications for Petersen products."
Mr. Casey Hardee, CEO and owner of Petersen, said, "Since Sam Petersen and I purchased the company in 2012 from its original founder, our team of highly qualified and dedicated people helped us build upon the strong foundations of the company to make many innovative improvements which led to rapid growth and success in the industry. I fully anticipate the company will continue on its current path producing essential high-quality products while achieving even greater success under Alamo Group ownership."
The Company anticipates completing the transaction during the first quarter of 2026, subject to regulatory approval and customary closing conditions. The acquisition is expected to be accretive to Alamo Group's growth and margins and to deliver solid recurring revenue from its aftermarket parts and services offerings. D.A. Davidson & Co. served as financial advisor and Dykema Gossett PLLC served as legal advisor to Alamo Group Inc.
About Alamo Group
Alamo Group is a leading global manufacturer of high-quality industrial and vegetation management equipment essential for public and private infrastructure maintenance and responsible land management practices. Our products include vacuum trucks, hydro-excavator machines, street sweepers, snow and ice removal equipment, truck and tractor-mounted mowing attachments, recycling and tree care equipment, and other industrial and vegetation maintenance equipment, and related after-market parts and services. The Company, founded in 1969, operates 27 plants in
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, failure to effectively integrate acquired companies, unanticipated acquisition results, increasing costs due to inflation, disease outbreaks, geopolitical risks, including tariffs, trade wars and the effects of the war in
View original content:https://www.prnewswire.com/news-releases/alamo-group-inc-to-acquire-petersen-industries-expanding-its-industrial-equipment-product-offering-302638483.html
SOURCE Alamo Group Inc.
FAQ
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