Titan Machinery acquires Australian IH dealer J.J. O’Connor for $ 63M in cash

Titan Machinery announced that it has entered into a definitive purchase agreement to acquire J.J. O’Connor & Sons the largest Case IH dealership group in Australia, for $63M in cash, subject to final working capital and other closing adjustments. In the unaudited full fiscal year period ended June 30 O’Connors generated revenue of $258M and EBITDA of $21.4M, as translated to USD. On a consolidated basis, O’Connors achieved a gross margin of approximately 18.7% in the full fiscal year 2023, and generated a total pre-tax margin of approximately 7.2%, representing a margin profile that is consistent with Titan’s. David Meyer, Titan Machinery’s Chairman and Chief Executive Officer, stated, “We are pleased to announce our definitive agreement to acquire O’Connors, Australia’s leading Case IH dealership group. This transaction marks our entry into the Australian agriculture market, as we continue to seek opportunities for Titan to expand its reach, both domestically and abroad”…The definitive agreement to acquire O’Connors contemplates an acquisition price of $63M, subject to final working capital and other closing adjustments, and will be funded with cash and Titan’s existing credit facility…The Transaction is subject to customary closing conditions and is expected to close in the fourth quarter of calendar 2023.