Toro Acquisition Expands Position in Zero Turn and UTV Markets
The Toro Company (NYSE: TTC) recently announced the acquisition of the privately-held Intimidator Group, based out of Batesville, Arkansas. The Intimidator Group designs and manufactures outdoor power equipment and side-by-side utility vehicles. They make these tools for the Intimidator, Envy, Bad Dawg, and Ground Hawg Max brands. Intimidator also owns Spartan Mowers, a professional line of zero-turn mowers known for performance, durability, and distinctive styling.
With Spartan Mowers’ established dealer network and strong presence in southern regions of the US, Toro believes that the Intimidator and Spartan acquisition will strategically expand its position. They look at this move to make them an even stronger player in the rapidly expanding zero-turn mower market.
Looking Forward
Richard Olsen, chairman and CEO of Toro, says, “Spartan’s product lineup complements our innovative Exmark and Toro branded equipment and provides unique opportunities to further leverage technology and design, procurement, and manufacturing efficiencies. We are confident the combined efforts of our teams will help advance our strategic priorities while providing unparalleled products, technologies and service to our customers.”
Olsen goes on to talk about how this acquisition positions Toro to deliver long term shareholder returns. They plan to do this by committing to disciplined capital deployment. This includes investments in business, acquisitions, dividend growth, and share repurchases.
Toro Acquires Intimidator and Spartan: The Financials
Toro has spent $400 million to purchase the Intimidator Group. This was paid with a combination of cash on hand and short-term borrowings under the company’s existing revolving credit facility. The purchase has already received customary regulatory approvals.
Toro expects the acquisition to be modestly accretive for fiscal 2022 adjusted earnings. Of course, this would exclude the transaction and integration expenses. They also expect to be able to provide full-year guidance that includes the Intimidator Group acquisition when it reports its fiscal 2022 first quarter results.
For the 2021 calendar year, Intimidator Group’s net sales amounted to around $200 million.
What Is Intimidator Saying About It?
Our success and growth is the result of our dedicated team of employees, dealers and supply partners for which we are truly thankful and excited to be taking this next step in our journey together. The Toro Company has a rich history and proven track record of growing brands with the resources to fuel our future growth. With a shared commitment to furthering innovation, serving customers and supporting our people and communities, we look forward to joining The Toro Company and continuing to provide best-in-class products and service to our customers.
Robert and Becky Foster, owners of Intimidator Group
To learn more about the Toro acquisition of the Intimidator and Spartan Mower brands, click here .
