Blount International has announced an agreement to acquire agriculture and construction equipment manufacturer Woods Equipment Company for approximately $185 million in cash.
"The acquisition of Woods significantly increases the scale of our farm, ranch, and agriculture business," said Josh Collins, Blount's chairman and chief executive officer.
"Woods' excellent brands, strong market position, and experienced management team coupled with our global distribution and supply chain network will provide many sales and efficiency opportunities within our combined businesses. There is a long list of value creation opportunities in this acquisition."
Bill Stuckert, president of Woods' aftermarket parts business unit said: "Blount's product offering and farm and ranch retail distribution is a natural fit with our TISCO aftermarket replacement parts and dealer network. Blount's global supply chain infrastructure will bring resources that will greatly enhance our growth opportunities."
Based in Portland, Oregon, Blount is a leader in the design, manufacturing, and marketing of replacement parts and equipment in global end markets including forestry, lawn and garden, farm, ranch, and agriculture, and concrete cutting and finishing, and is the market leader in manufacturing saw chain and guide bars for chain saws.
Woods, based strangely enough in Oregon, Illinois, is a manufacturer and marketer of equipment and replacement parts for the agriculture, grounds maintenance, and construction markets, primarily in North America, with approximately $160 million in sales for the twelve months ended 31 July 2011.
The acquisition will be structured as a merger and will be subject to certain customary terms and conditions, including US antitrust clearance. Pending regulatory clearance, the transaction is expected to close by the end of Q3 2011.
