Alta Equipment Group Acquires Yale Industrial Trucks, Inc.
06 Juli 2022 - 1:00PM
Business Wire
Expands Company’s North American Presence into
Major Canadian Markets
Alta Equipment Group Inc. (NYSE: ALTG) (“Alta” or “the Company”)
today announced that it has entered into a definitive agreement to
acquire Yale Industrial Trucks, Inc. (“YIT”), a privately held Yale
lift truck dealer with five locations in southeastern Canada. The
company provides sales, service, and rental of material handling
equipment throughout its territory, which encompasses Canada’s two
largest population centers of Toronto and Montreal. YIT has been a
successful dealer since 1972, has more than 140 employees, 75 of
which are service technicians and is headquartered in Woodbridge,
Ontario.
“The YIT acquisition is consistent with our growth strategy,
which includes expanding into new markets which offer substantial
opportunities to increase the scale of our business,” said, Ryan
Greenawalt, Chief Executive Officer of Alta. “This acquisition
extends our operations into an international market for the first
time and bridges our existing U.S. territories. It will benefit our
Material Handling business as Quebec and Ontario represent
approximately 80% of the market opportunity in Canada, and the
greater Toronto area is one of the top five industrial distribution
markets in North America. Culturally, they have a rich 50-year
history of providing outstanding service to customers in the
Canadian market which fits with our focus. We’re pleased to welcome
YIT to the Alta family.”
YIT generated approximately $46.6 million in revenue and
adjusted EBITDA of $9.4 million in the trailing twelve months
through May 2022. The implied enterprise value of the acquisition
is estimated to be approximately $33.5 million, subject to
post-closing purchase price adjustments.
In connection with the YIT acquisition, the Company will be
amending its ABL and Floorplan First Lien Credit Agreements. The
amendment will, (i) exercise $80 million of the $150 million
accordion function currently included in the Company’s asset-based
revolving line of credit increasing borrowing capacity from $350
million to $430 million, which will include a $35 million
Canadian-denominated sublimit facility; and (ii) increase the
borrowing capacity of its revolving floor plan facility by $10
million from $50 million to $60 million.
The Company expects to close both the acquisition of YIT and the
amendments to its credit agreements in the third quarter.
About Alta Equipment Group Inc.
Alta owns and operates one of the largest integrated equipment
dealership platforms in the U.S. Through its branch network, the
Company sells, rents, and provides parts and service support for
several categories of specialized equipment, including lift trucks
and aerial work platforms, cranes, earthmoving equipment and other
material handling and construction equipment. Alta has operated as
an equipment dealership for 38 years and has developed a branch
network that includes over 60 total locations across Michigan,
Illinois, Indiana, New England, New York, Virginia, Florida, and
Ohio. Alta offers its customers a one-stop-shop for most of their
equipment needs by providing sales, parts, service, and rental
functions under one roof. More information can be found at
www.altg.com.
Forward Looking Statements
This presentation includes certain statements that may
constitute “forward-looking statements” for purposes of the federal
securities laws. Forward-looking statements include, but are not
limited to, statements that refer to projections, forecasts or
other characterizations of future events or circumstances,
including any underlying assumptions. The words “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “would” and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Forward-looking
statements may include, for example, statements about: our future
financial performance; our plans for expansion and acquisitions;
and changes in our strategy, future operations, financial position,
estimated revenues, and losses, projected costs, prospects, plans
and objectives of management. These forward-looking statements are
based on information available as of the date of this presentation,
and current expectations, forecasts and assumptions, and involve a
number of judgments, risks and uncertainties. Accordingly,
forward-looking statements should not be relied upon as
representing the parties’ views as of any subsequent date, and we
do not undertake any obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities
laws. You should not place undue reliance on these forward-looking
statements. As a result of a number of known and unknown risks and
uncertainties, actual results or performance may be materially
different from those expressed or implied by these forward-looking
statements. Some factors that could cause actual results to differ
include, but are not limited to: (1) the outcome of any legal
proceedings that may be instituted against us relating to the
business combination and related transactions; (2) the ability to
maintain our listing of shares of common stock on the New York
Stock Exchange; (3) the risk that integrating our acquisitions
disrupts our current plans and operations; (4) the ability to
recognize the anticipated benefits of our business combination and
acquisitions, which may be affected by, among other things,
competition, our ability to grow and manage growth profitably, our
ability to maintain relationships with customers and suppliers and
retain our management and key employees; (5) changes in applicable
laws or regulations; (6) the possibility that we may be adversely
affected by other economic, business, and/or competitive factors;
(7) disruptions in the political, regulatory, economic and social
conditions domestically or internationally; (8) major public health
issues, such as an outbreak of a pandemic or epidemic (such as the
novel coronavirus COVID-19), which could cause disruptions in our
operations, supply chain, or workforce; and (9) and other risks and
uncertainties identified in this presentation or indicated from
time to time in the section entitled “Risk Factors” in our annual
report on Form 10-K and other filings with the U.S. Securities and
Exchange Commission (the “SEC”). The company cautions that the
foregoing list of factors is not exclusive, and readers should not
place undue reliance upon any forward-looking statements, which
speak only as of the date made. We do not undertake or accept any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements to reflect any change
in its expectations or any change in events, conditions or
circumstances on which any such statement is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20220706005120/en/
Investors: Kevin Inda SCR Partners, LLC IR@altg.com (225)
772-0254
Media: Glenn Moore Alta Equipment glenn.moore@altg.com
(248) 305-2134
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