ALTG - Alta Equipment Group to Acquire Burris Equipment Adding to Its Construction Business Segment | Benzinga
- Expands product portfolio and presence in the Illinois market.
- Burris's $40.6 million in revenue, $1.9 million in net income, $4.6 million in EBITDA on a trailing twelve-month basis is expected to be immediately accretive to the Company's leverage, profitability, and earnings per share ratios.
LIVONIA, Mich., Sept. 28, 2023 (GLOBE NEWSWIRE) -- Alta Equipment Group Inc. (NYSE:ALTG) ("Alta" or "the Company") today announced that it has entered into a definitive agreement to acquire Burris Equipment Company ("Burris"), a premier supplier of market leading construction and turf equipment with three locations in Illinois.
"The acquisition of Burris will not only yield immediately accretive returns to shareholders but will also notably enhance our business in Illinois," said Ryan Greenawalt, Chief Executive Officer of Alta. "In addition to adding important infrastructure and industry talent to the Chicago area in our Construction Equipment segment, we also eagerly embrace new OEM relationships stemming from the Burris acquisition, while simultaneously expanding with existing OEM partners to best serve Burris customers. This acquisition will fortify our product support presence and rental capabilities in the market, opening doors for the growth of our high-margin parts and service business. We extend a warm welcome to the Burris team as they become part of the Alta family."
Strategic and Financial Highlights
- Diversifies product portfolio and end markets in the Chicago area and expands Alta's infrastructure in the region with three new branches in Joliet, Waukegan and Lakemoor.
- Burris generated approximately $40.6 million in revenue, $1.9 million in net income and EBITDA of $4.6 million for the trailing twelve-month period through July 2023.
- Deal is structured as an asset acquisition allowing for step-up in tax basis of assets acquired.
Additional Transaction Details
- The purchase price is $14.0 million in cash, subject to working capital adjustments.
- The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2023.
- Including Burris, since the Company's initial public offering in 2020, Alta has completed 15 acquisitions which have contributed $487 million in revenue, and $58 million in Adjusted EBITDA.
- More information on Burris, its products and applications can be found at https://burrisequipment.com/home.
About Alta Equipment Group Inc.
Alta owns and operates one of the largest integrated equipment dealership platforms in the U.S. and has a presence in Canada. Through its branch network, the Company sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, heavy and compact earthmoving equipment, environmental processing equipment, cranes, paving and asphalt equipment and other material handling and construction equipment. Alta has operated as an equipment dealership for 39 years and has developed a branch network that includes over 75 total locations across Michigan, Illinois, Indiana, Ohio, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, Rhode Island, New York, Virginia, Nevada and Florida and the Canadian provinces of Ontario and Quebec. Alta offers its ...