Officials with The Toro Co. recently announced a definitive agreement to acquire the Boss professional snow and ice management business of privately-held Northern Star Industries, Inc. Based in Iron Mountain, Mich., Boss designs, manufactures and sells snow plows, salt and sand spreaders and related parts and accessories for light and medium duty trucks, ATVs, UTVs and loaders. Boss sales in 2014 are anticipated to be approximately $125 million.
“With the addition of Boss to our existing professional contractor businesses, we are even better positioned to strengthen and grow our relationships with these important customers by providing them with the innovative and durable equipment and high-quality service they need for each season,” said Michael Hoffman, Toro CEO.
He added that with the acquisition, Toro gains a strong professional contractor brand, a portfolio of reliable counter-seasonal equipment, efficient manufacturing operations and a well-established and broad North American distribution channel for such products. The Boss operations feature an experienced management team, a passionate and dedicated team of employees and a culture of innovation and customer service that is similar to Toro, Hoffman said.
The purchase price is approximately $227 million, which Toro will pay primarily in cash except for $30 million that will be paid in the form of a three-year note.