Alamo Group Inc. has entered into an agreement to acquire 100% of the outstanding capital shares of Morbark, LLC, a leading manufacturer of equipment and aftermarket parts for forestry, tree maintenance, biomass, land management and recycling markets. These products are marketed under the Morbark, Rayco, Denis Cimaf and Boxer Equipment brand names. The company’s annual sales were $225.5 million in 2018 and the company had trailing twelve month sales of $233 million as of the end of July, 2019.
Total consideration for the purchase is approximately $352 million subject to certain adjustments. The acquisition, which is expected to close in the 4Q 2019, is subject to a number of conditions, including the receipt of regulatory approvals and other pre-closing requirements.
Morbark was founded in 1957 and is based in Winn, Michigan with subsidiary operations in Wooster, Ohio and Roxton Falls, Quebec. The company has approximately 720 employees.
Morbark’s products include a broad range of tree chippers, grinders, flails and debarkers along with stump grinders, mulchers and brush cutters plus related aftermarket spare and wear parts. The company is privately held and primarily owned by Stellex Capital Partners.
The president of Morbark is Dave Herr and he will continue in this role upon completion of the transaction when the company will become a part of Alamo’s Industrial Division led by Jeff Leonard.
Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for infrastructure maintenance, agriculture and other applications.
