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BLOOMINGTON, Minn. - The Toro Company (NYSE:TTC) announced Monday it has entered into a definitive agreement to acquire Tornado Infrastructure Equipment Ltd. (TSX-V:TGH), a manufacturer of vacuum excavation trucks, for $1.92 per share CAD, representing a fully diluted equity value of $279 million CAD. According to InvestingPro data, Tornado currently has a market capitalization of $7.33 million USD and maintains a FAIR financial health score of 1.76.
The all-cash purchase price represents a 4 percent premium on Tornado’s latest closing share price. The transaction is expected to close during Toro’s fiscal 2026 first quarter, subject to regulatory approvals and other customary closing conditions.
Calgary-based Tornado manufactures vacuum trucks and industrial equipment for underground construction, power transmission and energy markets. The company generated approximately $149 million CAD in net sales during the trailing 12 months ended June 30, 2025.
The acquisition expands Toro’s underground and specialty construction product portfolio. The two companies have been partners since 2022, when Toro’s Ditch Witch Division entered into a strategic supply agreement with Tornado to co-develop an exclusive line of hydrovac trucks.
"This acquisition builds on the momentum in our Professional segment, which represented nearly 80 percent of our fiscal 2024 new sales," said Richard Olson, chairman and chief executive officer of The Toro Company.
Toro plans to finance the acquisition with debt from existing credit facilities and additional financial arrangements. The company expects annual run-rate cost synergies of $3 million USD over three years through purchasing and manufacturing efficiencies, and anticipates the transaction will be marginally accretive to earnings in the first year, excluding purchase accounting and transaction-related adjustments.
Brett Newton, president and chief executive officer of Tornado Infrastructure Equipment, said the partnership "enhances our ability to grow, support our employees, and meet the evolving needs of our customers."
According to the press release statement, Toro intends to preserve flexibility to continue its stock repurchase program while financing the transaction with debt.
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