SABJ: Seguin tractor maker closes $352M acquisition; expands into new product line
Monday, October 28, 2019
By Jessica Corso – Reporter, San Antonio Business Journal
Oct 28, 2019, 8:56am CDT Updated Oct 28, 2019, 10:35am EDT
Alamo Group Inc. has finalized the $352 million purchase of Michigan-based Morbark LLC, which moves the heavy equipment manufacturer into the forest management business.
The Seguin company recently notified investors that it closed on the deal, which was announced in September. The purchase adds new factories for Alamo [NYSE: ALG] in Ohio and Quebec and gives the company its first factory in Michigan.
"As is our general practice, we intend to maintain the Morbark brands in the market place and are glad that Dave Herr, president of Morbark, will continue in that role as part of Alamo Group," Alamo CEO Ron Robinson said in a statement.
Aside from the new location, the acquisition also presents Alamo with a new line of business. Already accustomed to building heavy equipment for municipalities and state transportation agencies looking to clear roadways of vegetation and debris, Alamo adds forestry equipment to its list of products. Morbark makes equipment for maintaining and clearing forests, including mulchers, stump cutters and tree trimmers.