ALTG - Alta Equipment Group to acquire Ecoverse Industries
- Alta Equipment Group ( NYSE: ALTG ) has agreed to acquire Ohio-based environmental processing equipment distributor, Ecoverse Industries.
- The purchase price includes $42.5M in cash, $2.5M of Alta common stock and a $6M seller note, at close. The sellers can also earn an $4M of Alta common stock and $12M of cash over a five-year period subject to future EBITA growth.
- The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2022. Ecoverse’s brand name, employees, and management team will remain in place post-close.
- This marks Alta's ( ALTG ) first investment into large-scale equipment distribution, expanding its product portfolio and diversifying end markets with entrance into environmental processing equipment.
- The deal is expected to be immediately accretive to Alta's ( ALTG ) free cash flow conversion, profitability, and earnings per share ratios. On a trailing twelve-month basis through July 2022, Ecoverse generated ~$64.3M in revenue, $10M in net income, adj. EBITDA of $10.1M , and $9.7M of adj. pre-tax net income.
For further details see:
Alta Equipment Group to acquire Ecoverse Industries