Toro Company to acquire Tornado Infrastructure Equipment for C$1.92 per share

Toro Company (TTC) announced that it has entered into a definitive agreement to acquire Tornado Infrastructure Equipment. The transaction is subject to certain antitrust and other regulatory approvals, approval by Tornado’s security holders, and other customary closing conditions, and is currently anticipated to close during The Toro Company’s fiscal 2026 first quarter. Based in Calgary, Alberta, Tornado Infrastructure Equipment is a manufacturer of vacuum trucks and industrial equipment solutions for the underground construction, power transmission and energy markets. During the trailing 12 months ended June 30, Tornado Infrastructure Equipment generated net sales of approximately C$149M. The Toro company will purchase all of the outstanding shares of Tornado Infrastructure Equipment for C$1.92 per share, or a fully diluted equity value of C$279M and intends to finance the acquisition with debt from existing credit facilities and additional financial arrangements. The all-cash purchase price is a 4 percent premium on Tornado Infrastructure Equipment’s latest closing share price. The Toro Company expects annual run-rate cost synergies of $3M over three years that the company intends to achieve through opportunities in purchasing and manufacturing efficiencies. The Toro Company expects the transaction to be marginally accretive to earnings in the first year, excluding purchase price accounting and transaction-related adjustments. By financing the transaction with debt, The Toro Company intends to preserve flexibility and capacity to continue to repurchase its shares under its stock repurchase program in line with its capital deployment strategy. The Toro Company expects to provide guidance regarding the anticipated contribution of the acquisition to its fiscal year 2026 financial results at the time of its fourth quarter earnings call.