Alamo Group has entered an agreement to acquire Morbark, LLC, for US$352 million.
Morbark manufactures equipment and aftermarket parts for the forestry, tree maintenance, biomass, land management and recycling sectors, which are marketed under the Morbark, Rayco, Denis Cimaf and Boxer Equipment brands. They will complement Alamo’s range of vegetation maintenance equipment.
Based in Winn, Michigan, US, Morbark has 720 employees and recorded revenues of $225.5 million in 2018. It also has subsidiary operations in Wooster, Ohio, US, and Roxton Falls, Quebec, Canada.
The president of Morbark, Dave Herr, will continue in his role upon completion of the transaction, when the company will become a part of Alamo’s Industrial Division led by Jeff Leonard. The acquisition is expected to be completed in the fourth quarter of 2019, subject to various conditions, including the receipt of regulatory approvals.
Ron Robinson, Alamo Group’s President and CEO, said, “Morbark is a well-run, profitable, and growing company in a sector that has been steadily improving.”
He said Alamo will continue Morbark’s existing strategic growth plan focused on product development and market expansion, supplemented by acquisitions.
“We also believe this acquisition will allow us to accelerate Morbark’s international growth plans with Alamo’s existing presence in areas such as Europe as well as select markets such as Brazil and Australia,” Robinson said.