Toro Buys Ventrac Tractors
Acquisition Expands Toro Portfolio with Articulating Turf, Landscape, and Snow Equipment
Toro announced yesterday that it has entered into an agreement to take over privately-held Venture Products, Inc., manufacturer of the Ventrac equipment line. Though the transaction still needs to meet regulatory approvals and go through other closing conditions, they expect the deal to close before the end of Toro’s fiscal second quarter for 2020.
Ventrac, based out of Orrville, Ohio, manufactures articulating turf, landscape, and snow management products for the grounds, landscape contractor, golf, municipal and rural acreage markets. Ventrac designs its tractors and equipment to excel on hillsides and soft turf conditions. And, with multi-season attachments, Ventrac products tackle a variety of applications with power and maneuverability. In 2019, Ventrac generated net sales in the $100 million ballpark.
Richard M. Olson, Chairman and CEO at the Toro Company, says, “Ventrac is well recognized in the industry for its market-leading innovation and commitment to meeting the diverse needs of customers. This acquisition supports our growth strategy in the professional market with the addition of a strong brand and expanded product offering to customers in the turf, landscape, and snow and ice maintenance categories. We have long respected and admired the Ventrac team, and we look forward to helping them grow on the successful foundation they have built in Orrville, Ohio.”
“We are excited to become a part of The Toro Company and its family of leading brands,” said Dallas Steiner, chief executive officer of Venture Products, Inc. “The Toro Company is committed to a culture that aligns with our employee values, has a rich history of success in the marketplace, and a proven track record of growing their brands. By joining with The Toro Company, it allows us to continue to serve our customers with authentic experiences and trusted products.”
Toro, who generated $3.1 billion in sales for 2019, will purchase Venture Products, Inc. for $167.5 million, subject to certain adjustments. The company intends to finance the transaction by borrowing under its existing revolving credit facility.