Woods Equipment Company Announces Strategic Partnership With Cabela's

OREGON, Ill., Aug. 15, 2013 -- Woods Equipment Company, a division of Blount International, Inc., and a leading full-line manufacturer of high-quality attachments and implements, announced today a supplier partnership with Cabela's Incorporated, the World's Foremost Outfitter® of hunting, fishing and outdoor gear. Through the new partnership, Woods will supply implements to complement Cabela's new "Wildlife and Land Management (WLM)" product category. In the initial phase, Cabela's and Woods are conducting a test market at the Cabela's store in Sidney, Nebraska. Later in 2013, the test will roll out in additional markets, including Arkansas, Connecticut, Louisiana, Minnesota, and Texas.

"Both companies carry a reputation for innovation, quality, value and service," said Jerry Johnson, President Woods Equipment Company. "In exploring a new product category, Cabela's wanted to ensure that the attachment offering was consistent with their brand image and the products would meet their end-customers' expectations. Cabela's contacted Woods as their first choice in attachment suppliers and at that time, we were preparing to launch our new precision seeder and other land management attachments into the hunting and conservation market. The alignment with Cabela's became a natural fit."

Partnering with Cabela's marks Woods' entry into the retail distribution channel. "The Cabela's team is focused on quality and service and has a strong desire to help their core customer base manage their land with products and services well-beyond attachments," said Johnson. "We feel their market strategy complements our existing distribution channels and will increase brand value and awareness to the benefit of our dealer network."

Woods Equipment Company, a division of Blount International, Inc. is headquartered in Oregon, Ill. A leading full-line manufacturer of high-quality attachments and implements, as well as distributor of aftermarket parts, Woods serves a dealer network of agricultural, landscape, and construction professionals with products marketed under the brand names Woods®, Alitec®, Central Fabricators®, Gannon®, Wain-Roy®, WoodsCare™, and TISCO®. With a reputation for durability and reliability, Woods' attachments are manufactured to American Welding Society standards, tested in rigorous real-life conditions, and comply with recommended industry safety standards.

www.sacbee.com    

Blount Announces 2011 4th Quarter and Full Year Results, Outlook for 2012

-- Full year sales increased 36% to $832 million

-- Full year operating income increased 14% to $98 million

-- Fourth quarter 2011 sales increased 38% from the prior year, 4% when excluding sales associated with

    acquired businesses

-- Fourth quarter 2011 operating income and operating margin consistent with fourth quarter 2010 results,

    excluding the impact of businesses acquired in 2011

PORTLAND, Ore. -- March 6 -- today announced results for the fourth quarter and full year ended December 31, 2011. Blount also provided an outlook for 2012.

Results for the Quarter and Full Year Ended December 31, 2011

Sales in the fourth quarter were $236.5 million, a 38% increase from the fourth quarter of 2010 and a 4% increase when excluding the impact of acquired businesses. Operating income for the fourth quarter of 2011 was $21.4 million compared to $21.5 million in the prior year. The year-over-year impact of acquired businesses increased sales by $59.0 million and decreased operating income by $0.4 million in the fourth quarter of 2011.

Fourth quarter 2011 operating income includes non-cash charges of $6.7 million related to accounting for acquisitions. Fourth quarter income from continuing operations was $9.5 million ($0.19 per diluted share) compared to $12.4 million ($0.25 per diluted share) in the fourth quarter of 2010. Both non-cash purchase accounting charges and a higher income tax rate contributed significantly to the lower income from continuing operations. The year-over-year increase in non-cash purchase accounting charges in the fourth quarter of 2011 reduced income from continuing operations by $3.4 million, or $0.07 per diluted share. 

Full year 2011 sales were $831.6 million, a 36% increase from 2010. Full year 2011 sales rose 14% when excluding sales generated from acquired businesses. Operating income for 2011 was $98.0 million compared to $85.6 million in 2010, and income from continuing operations was $49.7 million ($1.01 per diluted share) compared to $41.4 million ($0.85 per diluted share) in 2010. The year-over-year increase in non-cash purchase accounting charges in 2011 reduced income from continuing operations by $8.5 million, or $0.17 per diluted share. 

"The past year was extremely productive, including the acquisitions of KOX, PBL, and Woods/TISCO; the refinancing of our lending facility, which lowered our borrowing costs and provided us low cost acquisition financing; the introduction of an OREGON® branded log splitter and OREGON® PowerNow™ cordless chain saw; the ground breaking for the expansion of our saw chain and guide bar manufacturing facility in China, which will allow us to meet future customer demand; and the opening of our new Kansas City distribution center," commented Josh Collins, Blount's Chairman and Chief Executive Officer.

"Our fourth quarter 2011 results reflect increased spending and investment in connection with executing our strategic programs as well as some slowing in sales growth compared to rates we saw earlier in the year. We expect a busy 2012 as we work to integrate the recently acquired businesses and increase capacity."

Segment Results

As a result of the acquisitions we made in 2011, we now operate in two business segments – the Forestry, Lawn, and Garden ("FLAG") segment and the Farm, Ranch, and Agriculture ("FRAG") segment.  Beginning with the fourth quarter of 2011, the Company is reporting separate results for the FLAG and FRAG segments. Blount's Concrete Cutting and Finishing ("CCF") business is included in "Corporate and Other." All financial information for our business segments is presented on a comparable basis.

Forestry, Lawn, and Garden

The FLAG segment reported fourth quarter and full year 2011 sales of $165.6 and $659.8 million, respectively. Fourth quarter 2011 sales increased 14% from the fourth quarter of 2010; 4% when excluding acquired businesses. For comparability, all sales statistics are quoted excluding the impact of acquired businesses for the period during which Blount did not own the acquired business.

Fourth quarter 2011 sales were strongest in the South Asia and South American markets, growing a combined 10% compared to the fourth quarter of 2010, followed by the U.S. which grew 6% in the fourth quarter of 2011. Europe and Russia combined for an 8% sales decline as market conditions softened with sovereign debt concerns and economic conditions in that region. The change in segment sales for the comparable fourth quarter periods is illustrated below, with sales from businesses acquired within the past year of $14.0 million presented entirely as acquired volume increase.

Segment backlog was $182.4 million at December 31, 2011 compared to $126.0 million at December 31, 2010. Backlog at December 31, 2011 includes $9.7 million related to businesses acquired in 2011.

Segment contribution to operating income and Earnings Before Interest, Taxes, Depreciation, Amortization and certain charges ("Adjusted EBITDA") was $26.3 million and $33.3 million, respectively, for the fourth quarter of 2011. Segment contribution to operating income and Adjusted EBITDA increased by 0.4% and 5.3%, respectively, for the fourth quarter of 2011 versus 2010.  Increased selling prices had the largest impact on segment operating income.

The impact of steel costs reduced segment contribution to operating income, partially offset by favorable changes in currency exchange rates, which combined for a reduction to segment contribution margin by approximately 110 basis points.

The positive impact of currency on the segment's cost structure was related to the relatively weaker Brazilian currency as well as more favorable currency exchange rates underlying material purchases on a year-over-year basis. Increased unit volume and segment average selling prices improved segment contribution to operating income, but were partially offset by increased costs/mix spending, combining for an increase in segment contribution margin of 90 basis points.

The increase in segment cost/mix spending was driven by higher advertising expense in support of the recently introduced OREGON® PowerNow™ cordless chain saw. Compensation and relocation costs also increased in connection with positioning personnel in the supply chain and marketing areas to execute the Company's strategic programs.

Farm, Ranch, and Agriculture

The FRAG segment reported fourth quarter and full year 2011 sales of $65.8 and $147.5 million, respectively. Fourth quarter 2011 sales increased $45.3 million from the fourth quarter of 2010, driven nearly entirely by sales generated by acquired businesses. Excluding the impact of acquired businesses, sales increased just over 1%. The change in segment sales for the comparable fourth quarter periods is illustrated below, with sales from business acquired within the past year of $45.1 million presented entirely as acquired volume increase.

Segment backlog was $28.3 million at December 31, 2011 compared to $6.7 million at December 31, 2010. December 31, 2011 backlog includes $21.5 million related to businesses acquired in 2011.

Segment contribution to operating income and Adjusted EBITDA was a net expense of $0.6 million and earnings of $6.3 million, respectively, for the fourth quarter of 2011. Acquired businesses had a significant impact on segment contribution to operating income.

The unfavorable cost/mix impact on segment contribution to operating income was driven primarily by approximately $2.0 million of costs associated with consolidating the SpeeCo assembly and distribution center from Golden, Colorado, into our Kansas City, Missouri facility and supplier driven warranty expenses. Those costs include overlapping personnel expense, operating and logistics costs, and severance expense associated with closing the Golden, Colorado operation and product rework and refund expense associated with the warranty issues. The consolidation is expected to be completed by the end of the second quarter of 2012 and provide approximately $1.0 million of cost savings on an annual basis by the end of 2012.

Corporate and Other

Corporate and other generated net expense of $4.3 million in the fourth quarter of 2011, down from $5.4 million in the fourth quarter of 2010. Lower spending on strategic programs, primarily business acquisition expenses, drove the improvement.

Income from Continuing Operations

Fourth quarter 2011 income from continuing operations declined primarily due to the impact of non-cash purchase accounting charges and a larger income tax expense in the fourth quarter of 2011 compared to the fourth quarter of 2010. A reduction in net interest expense partially offset the impacts of purchase accounting and income taxes. Net interest expense was $4.5 million in the fourth quarter of 2011 versus $5.0 million in the fourth quarter of 2010. The impact of lower interest rates in 2011 more than offset the higher average borrowing levels driven by acquisitions in 2011.

The Company recorded tax expense of $7.0 million in the fourth quarter of 2011 versus $4.0 million in the fourth quarter of 2010. The fourth quarter 2011 effective tax rate was adversely impacted by certain book expense items that are not deductible for income tax purposes.

Cash Flow and Debt

As of December 31, 2011, the Company had net debt of $468.2 million, a decrease of $2.2 million from September 30, 2011. The decrease in net debt in the fourth quarter of 2011 resulted primarily from the generation of $16.7 million of cash from operations, offset by net capital expenditures of $15.2 million.

Net capital expenditures were $9.3 million larger in the fourth quarter of 2011 than the fourth quarter of 2010 as the Company executed on its planned investment in China manufacturing capacity and incurred capital spending at acquired businesses. The Company generated $1.5 million in free cash flow in the fourth quarter of 2011. The Company defines free cash flow as cash flows from operating activities less net capital spending.

The ratio of net debt to pro forma last-twelve-months ("LTM") Adjusted EBITDA was 2.8x as of December 31, 2011, which is consistent with September 30, 2011 and an increase from 2.1x of net leverage at the end of December 2010. The increase in leverage from the end of 2010 is the result of acquisitions made in 2011, offset by free cash flow generation in 2011.

2012 Financial Outlook

The Company's fiscal year 2012 outlook is for sales to range between $1,020 million and $1,060 million, and operating income to range between $120 million and $133 million. Our expectation for 2012 sales levels assumes growth in FLAG sales of 4% to 7% and growth in FRAG sales of 8% to 11%, both compared to 2011 pro forma full-year levels and including sales price increases of between 1% and 3%.

The expectation for 2012 assumes that unfavorable foreign currency exchange rates will reduce operating income on a year-over-year basis by between $1.0 million and $2.0 million and rising steel prices will further reduce year-over-year operating income between $2.0 million and $3.0 million.

The outlook for 2012 operating income also includes estimated non-cash charges as a result of acquisition accounting of approximately $17 million. Free cash flow for 2012 is expected to range between $50 million and $60 million, after approximately $45 million to $50 million of capital expenditures. Net interest expense is expected to be approximately $17 million in 2012, and the effective income tax rate for continuing operations is expected to be between 34% and 37% in 2012.

Adjusted EBITDA and Free Cash Flow are non-GAAP measures and are reconciled to Operating Income and Cash Flow from Operations in the attached financial data table.

Blount is a global manufacturer and marketer of replacement parts, equipment, and accessories for consumers and professionals operating primarily in two market segments: Forestry, Lawn, and Garden ("FLAG"); and Farm, Ranch, and Agriculture ("FRAG"). Blount also sells products in the construction markets and is the market leader in manufacturing saw chain and guide bars for chainsaws.  Blount has a global manufacturing and distribution footprint and sells its products in more than 115 countries around the world.  Blount markets its products primarily under the OREGON®, OREGON® PowerNow™, Carlton®, Woods®, TISCO, SpeeCo®, and ICS® brands.

Blount International Announces Third Quarter Results, Updates 2011 Outlook

• Sales increased 31% from the prior year, 12% from base business and 19% from acquisitions
• Base business operating income increased 19% from the prior year
• Full-year outlook for 2011 sales and profit updated to incorporate businesses acquire
• New $700 million credit facility partially utilized to refinance debt and acquire Woods

PORTLAND, Ore., Nov. 3 -- Blount International, Inc. today announced results for the third quarter ended September 30, 2011 and updated its full year financial outlook for 2011.

Results for the Quarter Ended September 30, 2011

The Company's sales in the third quarter were $212.9 million, a 31.0% increase from the third quarter of 2010, and a 12.4% increase when excluding the impact of acquired businesses.

Operating income for the third quarter of 2011 was $23.9 million compared to $20.7 million in the prior year.

During the third quarter, the Company completed the acquisitions of Woods Equipment Company ("Woods") and Finalame SA including its wholly-owned subsidiary PBL SAS ("PBL"). The year-over-year impact of acquired businesses increased sales by $30.2 million and reduced operating income by $0.7 million in the third quarter of 2011.

The reduction to third quarter 2011 operating income from acquisitions was primarily the result of non-cash charges related to acquisition accounting of $2.3 million. Additionally, third quarter operating income includes $2.5 million of incremental business acquisition expenses compared to the third quarter of 2010. Third quarter income from continuing operations was $10.8 million ($0.22 per diluted share) compared to $10.6 million ($0.22 per diluted share) in the third quarter of 2010.

Josh Collins, Chairman and Chief Executive Officer, commented on the third quarter results: "We accomplished a great deal in the third quarter this year. Our base business performed well with sales up more than 12%. We closed the acquisitions of PBL and Woods, both of which provide significant opportunity for growth, scale, and capacity for our Farm, Ranch, and Agriculture as well as our Forestry, Lawn, and Garden businesses. We are focused on integrating those businesses within our global sales, supply, and distribution network and executing on operating improvements identified in our due diligence. We expect solid accretion to earnings and value in the upcoming year from both PBL and Woods. Overall, we are excited about the operating opportunities we have ahead of us in all of our business lines."

Sales

Sales were 12.4% higher in the third quarter of 2011 compared to the third quarter of 2010 when excluding the impact of acquisitions. For comparability, all sales growth statistics are quoted excluding sales related to acquisitions within the last 12 months. International sales grew 13.5%, and domestic sales grew by 10.0%.

Domestic sales were most robust for the SpeeCo business, slightly offset by a mostly weather related decline in lawn and garden sales.

Sales to original equipment manufacturers were essentially flat, and replacement sales increased 15.9%. Price increases implemented in the last 12 months contributed approximately $4.3 million to sales on a year-over-year basis and foreign exchange rate changes added another $2.7 million to sales.

Sales order backlog was approximately $172.5 million at September 30, 2011 compared to $133.7 million at December 31, 2010 and $130.4 million at September 30, 2010. Excluding backlog related to businesses acquired in 2011, backlog was $150.1 million, which is 15.1% higher than the year-ago period.

Gross Profit

Third quarter 2011 gross profit was $65.6 million compared to $50.4 million in the third quarter of 2010. The increase in gross profit was driven primarily by the increase in sales volume, including that from businesses acquired in 2010 and 2011. The favorable impact of selling price increases and higher sales volumes was partially offset by year-over-year unfavorable movement in currency exchange rates and non-cash expenses related to acquisition accounting.

The foreign exchange impact reflects the strength of both the Canadian Dollar and Brazilian Real compared to the U.S. Dollar, which increased manufacturing conversion costs, offset by European currency strength reflected in sales. The impact of steel purchase prices reduced gross profit by $1.4 million and $0.7 million compared to the second quarter of 2011 and third quarter of 2010, respectively, as steel prices have risen over the course of 2011.

Cost of sales improved $3.7 million in the third quarter of 2011 compared to the third quarter of 2010, excluding the impact of steel and foreign exchange rate changes. The cost improvement is primarily the result of favorable product mix and volume leverage of $1.6 million and from $1.3 million of inventory charges taken in the third quarter of 2010 and not repeated in 2011. Additionally, Q3 2010 was unfavorably affected by costs associated with the rapid increase in manufacturing output.

Productivity has improved in the intervening 12 months, and third quarter 2011 production costs have improved as a result. Sales volumes from acquired businesses have reduced gross margins. This impact will continue in the near term, but will be offset by identified synergies, primarily in the supply chain, over the next three to five years.

Operating Income

Operating income increased to $23.9 million in the third quarter of 2011 from $20.7 million in the third quarter of 2010.

SG and A increased by $4.1 million compared to the third quarter of 2010, excluding the impact of acquisitions, spending on acquisition execution and foreign exchange rate changes. The increase was driven primarily by increased compensation and benefits of $2.7 million reflecting annual pay increases and increased headcount in support of the Company's growth. Additionally, the Company incurred approximately $0.7 million additional relocation and travel expenses, and increased advertising spending of $0.5 million, primarily to support new products.

Income from Continuing Operations

Third quarter 2011 income from continuing operations improved primarily due to improved operating income and a reduction in net interest expense, partially offset by an increase in income taxes compared to the third quarter of 2010.

The Company recorded tax expense of $4.9 million in the third quarter of 2011 versus a tax benefit of $4.8 million in the third quarter of 2010. The tax benefit in the third quarter of 2010 was driven primarily by the release of $5.9 million of previously provided income tax expense on uncertain tax positions.

Cash Flow and Debt

As of September 30, 2011, the Company had net debt of $470.5 million, an increase of $206.1 million from June 30, 2011. The increase in net debt in the third quarter of 2011 resulted from the acquisitions of Woods and PBL, partially offset by the generation of cash by the Company's ongoing operations. In the third quarter, the Company generated $9.6 million in free cash flow. The Company defines free cash flow as cash flows from operating activities less net capital spending. The ratio of net debt to pro-forma last-twelve-months ("LTM") Adjusted EBITDA was 2.8X as of September 30, 2011, an increase from net leverage of 1.9X at the end of the second quarter of 2011 and 2.1X at the end of December 2010.

On June 13, 2011, the Company amended the terms of its Senior Credit Facility, which became effective on August 9, 2011 when the amended Senior Credit Facility was initially funded. The Company recorded a non-cash charge to third quarter 2011 pretax income of approximately $3.9 million related to the Amendment. As a result of the Amendment, the Company expects to save approximately $7 million in annual cash interest cost based on current LIBOR rates and borrowing levels at the time of funding.

2011 Financial Outlook

The Company's fiscal year 2011 outlook, on an actual or as reported basis, is for sales to range between $825 million and $835 million and operating income to range between $100 million and $103 million.

Our expectation for 2011 sales levels assumes a full year of SpeeCo ownership and fourth quarter growth for the base business of between 5% and 7%, plus the benefit of the KOX, PBL, and Woods businesses acquired in the last 12 months.

The expectation for 2011 operating income assumes that the impact of unfavorable foreign currency exchange rates and rising steel prices will reduce year-over-year operating income between $9 million and $10 million, and includes estimated non-cash charges as a result of acquisition accounting of approximately $15.8 million.

Free cash flow is expected to range between $51 million and $55 million in 2011, after approximately $34 million to $38 million of capital expenditures. Net interest expense is expected to be approximately $18 million in 2011, and the effective income tax rate for continuing operations is expected to be between 31% and 34% in 2011.

For the full year 2011 on a pro forma basis to incorporate all businesses acquired, we expect $975 million of sales and $172 million of Adjusted EBITDA. We expect pro forma free cash flow of approximately $62 million as increased cash from operations is offset by increased capital spending in the fourth quarter of 2011.

Blount is a global manufacturer and marketer of replacement parts, equipment, and accessories for the forestry, lawn and garden; farm, ranch and agriculture; and construction markets, and is the market leader in manufacturing saw chain and guide bars for chainsaws. Blount sells its products in more than 100 countries around the world. For more information about Blount, please visit our website at http://www.blount.com/.

Genstar Capital Announces Agreement to Sell Woods Equipment to Blount

Here’s the seller’s take on why they’re selling Woods Equipment Company to Blount.

SAN FRANCISCO -- Aug. 17 -- Genstar Capital, LLC, a middle market private equity firm that focuses on investments in selected segments of the life sciences, healthcare, financial services, software, and industrial technology industries, today announced the signing of a definitive agreement with Blount International, Inc. to sell its portfolio company Woods Equipment Company, a leading manufacturer of attachments for agricultural and construction applications and the largest independent distributor of tractor parts.  The transaction is valued at approximately $185 million.

Woods Equipment Company, headquartered in Oregon, Ill., is a leading full-line manufacturer of high-quality attachments and implements, as well as a leading distributor of aftermarket parts.  The company serves the agriculture, grounds care, and construction industries, as well as providing aftermarket parts. Woods serves a dealer network of agricultural, landscape, and construction professionals with products marketed under the brand names Woods®, Alitec®, Central Fabricators®, Gannon®, Wain-Roy®, WoodsCare™, and TISCO®. 

Rob S. Rutledge, a Genstar Vice President who heads the firm's Industrial Technology vertical, said, "The sale of Woods is a good example of how Genstar applies its differentiated strategy in the middle market to effectuate change and build industry-leading businesses. Working with the Woods management team and our operating executives, Michael Hurt and Ed Carpenter, the company implemented strategic initiatives such as product re-engineering, distribution expansion and key management additions and promotions to drive growth and improve its market position.  Woods is now very well positioned for continued success as a key part of Blount."

Bill Marcum, CEO of Woods, said, "Because of the support and commitment of our partners at Genstar we were able to focus on our business and commit new capital to projects that will enable us to offer innovative technology innovations that will make Woods even stronger going forward.  We thank Genstar for their support and partnership."

The transaction is subject to the expiration or termination of the Hart-Scott-Rodino Antitrust Act waiting period and is expected to close in the third quarter.

About Genstar Capital, LLC

Genstar Capital is a leading private equity firm that has been actively investing in high quality companies for more than 20 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of operating executives and strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar has more than US$3 billion of committed capital under management and targets investments focused on selected sectors within the life science, healthcare services, software and software services, financial services, and industrial technology industries.

Blount International Acquires Woods Equipment Company

August 17 -- The acquisition of an Illinois tractor and tool company by Portland's Blount International Inc. is the latest in a string of deals the company has made in an effort to expand its reach from forests to farms.

Blount International, a holding company, markets its products under several different brands.

• Oregon, Carlton and Windsor: The three brands manufacture replacement parts for chainsaws, particularly chains and guide bars. The largest, Oregon, also makes outdoor power equipment replacement parts.
• SpeeCo: The 2010 acquisition of the log splitter and tractor part company was Blount's first foray into farm, ranch and agriculture.
• ICS: Manufactures concrete cutting hydraulic and gas chainsaws for the construction business, as well as replacement parts.
• Woods: The newly-acquired company markets its agriculture, groundskeeping and construction equipment and parts under the brands Woods, Alitec, Central Fabricators, Gannon, Wain-Roy, WoodsCare and TISCO.

Blount, the makers of the Oregon brand saw chains and yard care products, announced Wednesday it would buy Illinois-based Woods Equipment Co. for $185 million.

The cash acquisition, Blount said, will increase its reach in the agriculture business. The company will acquire the Woods and TISCO tractor parts brands, as well as three manufacturing facilities and five distribution centers.

The deal is Blount's fourth acquisition in 18 months. After a changeup in Blount's senior leadership in 2009, the company launched a new growth plan to acquire companies in related markets, with a particular emphasis on agriculture.

"Woods was high on our list," said David Willmott, Blount's president and chief operating officer. "We identified it well over a year ago."

Just last week, Blount closed a deal to buy PBL SAS, a French lawnmower-blade manufacturer. It paid $14 million in cash and took on $14 million in debt. In March, Blount paid $20.6 million in cash and stock to buy KOX, a German direct-to-customer forestry-parts company.

Last year, the company bought SpeeCo, a Golden, Colo., maker of log splitters and farm and ranch accessories. It paid $90 million in cash.

Willmott said Blount is looking to make more acquisitions in the ranch and farm market. In particular, he said, the company is looking to expand its presence in Brazil, where it already manufactures forestry and yard products.

"I wouldn't expect something to happen in the very near future, but we're spending a lot of time researching the market in Brazil on the agriculture side," Willmott said.

Willmott said SpeeCo and other recent acquisitions have already performed well for the company. In the quarter ending March 31, Blount reported SpeeCo and KOX had contributed $22.3 million in sales, by itself a 16.7 percent boost over the first quarter of 2010.

Woods registered about $160 million in sales last year, Blount said. It also hopes to leverage Woods' network of 11,000 dealers.

"Just about any place where ag parts and accessories are sold, you either are or should be selling saw chain," Willmott said.

Blount will form a subsidiary to merge with the company. The deal is expected to close by the end of 2011's third quarter, pending regulatory approval.

Blount will finance the deal through cash on hand and its revolving credit facility. The company had $80.5 million on hand at the end of June, according to a financial report filed last week.