The Toro Co. has entered into a definitive agreement to acquire the BOSS professional snow and ice management business of privately held Northern Star Industries. The transaction is expected to close during Toro’s fiscal 2015 first quarter, subject to customary closing conditions.
Based in Iron Mountain, Mich., BOSS designs, manufactures and sells snowplows, salt and sand spreaders and related parts and accessories for light- and medium-duty trucks, ATVs, UTVs and loaders. BOSS sales in 2014 are expected to be about $125 million.
The purchase price is about $227 million, which Toro will primarily pay in cash except for $30 million that will be paid in the form of a three-year unsecured promissory note. Toro plans to fund the cash portion of the purchase price with cash on hand and borrowings under a five-year unsecured revolving credit facility that includes a senior term loan.
“With the addition of BOSS to our existing market-leading professional contractor businesses, we are even better positioned to strengthen and grow our relationships with these important customers by providing them with the innovative and durable equipment and high-quality service they need for each season,” said Michael Hoffman, Toro chairman and CEO. “We’ve long been interested in the professional snow and ice management category. We are impressed with BOSS’ solid business performance and we are optimistic about the opportunities for growth through product line expansion and in international markets.
“Through this acquisition, we will gain another strong professional contractor brand, a portfolio of reliable counter-seasonal equipment, efficient manufacturing operations and a well-established and broad North American distribution channel for these products.”
