Stellex Capital Management, a private equity firm, said it is selling Morbark, LLC, a manufacturer of equipment for the forestry, recycling, tree care, sawmill, land clearing and biomass markets to Alamo Group for $352 million. Stellex bought Morbark in March 2016. The sale includes all assets and operations of Morbark and its affiliate brands.
The acquisition, which is expected to close in the fourth quarter of 2019, is subject to a number of conditions, including the receipt of regulatory approvals and other pre-closing requirements. Upon completion of the transaction, Morbark will become part of Alamo’s Industrial Division. Dave Herr will continue as Morbark CEO.
Morbark’s product line includes brush chippers, stump cutters, mini skid steers, forestry mulchers, aerial trimmers, whole tree, and biomass chippers, flails, horizontal and tub grinders, sawmill equipment, material handling systems, and mulcher head attachments for excavators, backhoes, and skid steers.
Alamo Group is a manufacturer of equipment for infrastructure maintenance, agriculture and other markets. Products include truck-and tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements, and related after-market parts and services. The company, founded in 1969, has approximately 3650 employees and operates 29 plants in North America, Europe, Australia and Brazil as of June 30, 2019. The corporate offices of Alamo Group Inc. are located in Seguin, Texas and the headquarters for the company’s European operations are located in Salford Priors, England.
Since Stellex’s acquisition of Morbark, the company has completed two acquisitions to expand its product offerings and geographic presence. In October 2017, Morbark acquired Rayco Manufacturing, Wooster, Ohio, a manufacturer of stump cutters, crawler trucks, forestry mulchers, multi-tool carriers, and aerial trimmers. In December 2018, Morbark acquired Denis Cimaf, Roxton Falls, Quebec, a manufacturer of industrial brushcutters and mulcher heads. With these acquisitions and other strategic improvements, Morbark has increased its headcount by more than 200 employees and revenue has nearly doubled.
“This moves provides numerous benefits for Morbark,” Herr said. “Employees, customers, and dealers will notice no significant changes in their day-to-day work. Being part of a publicly traded company provides long-term stability so we can continue our investments in equipment and products to promote continued growth. All of our brands have an excellent reputation in the industry and will be maintained with no changes. We will have a significant opportunity to leverage Alamo’s international presence to expand our sales and sourcing capabilities.”