Procore signs multi-year strategic collaboration agreement with AWS
SEGUIN, Texas - Alamo Group Inc. (NYSE:ALG), a $2.65 billion market cap industrial equipment manufacturer with a "GREAT" financial health rating according to InvestingPro, announced Monday it has completed the acquisition of Ring-O-Matic, Inc., a manufacturer of industrial vacuum excavation equipment based in Pella, Iowa.
The transaction was funded with existing cash and is subject to standard working capital adjustments, according to a company press release.
Founded in 1960, Ring-O-Matic produces trailer-mounted and custom truck-mounted excavation and vacuum units used for hydro excavation, utility infrastructure digging, trenching, sewer jetting, and storm drain cleaning. The acquired company generated approximately $25 million in revenue in 2024.
"This acquisition nicely ties to our strategy of developing market share through the acquisition of successful businesses that enhance our current product offering," said Jeff Leonard, Alamo Group’s President and Chief Executive Officer.
Brian Metcalf, who has owned Ring-O-Matic since 2017, expressed confidence that the company will "continue on its current path producing high-quality and innovative products while achieving even greater success under Alamo Group ownership."
Alamo Group, established in 1969, manufactures equipment for vegetation management, infrastructure maintenance and other applications. The company operates 27 plants across North America, Europe, Australia, and Brazil, employing approximately 3,750 people as of March 31, 2025.
The acquisition is expected to complement Alamo Group’s existing product lineup, with the company anticipating both cost and revenue synergies as it integrates Ring-O-Matic into its operations.
In other recent news, Alamo Group Inc. reported its first-quarter 2025 earnings, surpassing expectations with earnings per share (EPS) of $2.65, compared to the forecasted $2.29. However, the company’s revenue slightly missed projections, coming in at $391 million against a forecast of $392.2 million. Despite the revenue miss, the company’s Industrial Equipment Division achieved record net sales of $227.1 million, marking a 12.5% organic growth. Alamo Group has also reached a significant financial milestone by achieving nearly-zero net debt in the first quarter, maintaining a healthy cash position with Franchise Free Cash Flow well over $100 million. The company’s strong financial performance has led DA Davidson to raise the price target for Alamo Group shares from $195.00 to $225.00, maintaining a Buy rating on the stock. The analyst from DA Davidson anticipates that Alamo Group will likely allocate its excess cash towards substantial mergers and acquisitions or share repurchase initiatives. The company remains optimistic about the latter half of 2025, with expectations for sequential improvements in both the Industrial and Vegetation divisions. CEO Jeff Leonard expressed confidence in the company’s strategic direction, particularly in terms of mergers and acquisitions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.