The Toro Company has entered into a definitive agreement to acquire the BOSS professional snow and ice management business of privately-held Northern Star Industries, Inc. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close during Toro’s fiscal 2015 first quarter.
Based in Iron Mountain, Mich., BOSS designs, manufactures, and sells snowplows, 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 market-leading 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’s chairman and chief executive officer.
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 unsecured promissory note. Toro plans to fund the cash portion of the purchase price with cash on hand and borrowings under a new five-year unsecured revolving credit facility that includes a senior term loan. Toro expects this acquisition to be slightly accretive to fiscal 2015 earnings.