Blount International Acquires Speeco

PORTLAND, Ore., Aug. 10 -- Blount International, Inc., a leader in the manufacturing, marketing, and distribution of replacement parts, equipment, and accessories for the global forestry, lawn and garden, and construction industries, today announced the acquisition of SP Companies, Inc. and its wholly-owned subsidiary, SpeeCo, Incorporated, a Golden, Colorado-based supplier of log splitters, post-hole diggers, tractor three-point linkage parts and equipment, and farm accessories. Blount purchased all of the stock of SpeeCo for approximately $90 million in cash, subject to certain adjustments, and funded the acquisition utilizing its new credit facility.

The acquisition of SpeeCo is expected to provide several benefits to Blount:

Expands product lines and expertise in whole goods and farm and ranch markets
Establishes a platform for further growth in the farm, ranch, and agricultural end markets
Adds well known brands to the Blount portfolio
Improves low-cost country product sourcing capabilities
Produces profit and cash flow that are accretive in the near-term

"Blount's acquisition of SpeeCo will provide an immediate, substantial entry into products and markets that complement our existing businesses," stated Josh Collins, Blount's Chairman and Chief Executive Officer. "SpeeCo's well known and respected farm and ranch brands and experienced management team, coupled with our global distribution network, provide attractive growth opportunities. We intend to utilize fully the strengths of each company to realize the benefits of this acquisition."

In the twelve months ended July 31, 2010, SpeeCo's revenue was $77.1 million, operating income was $8.2 million, and adjusted earnings before interest, taxes, depreciation, and amortization ("adjusted EBITDA") amounted to $13.1 million. Revenue has grown from approximately $53.3 million in 2006 to current levels, representing a compound annual growth rate of approximately 10.8%.

The acquisition is expected to be accretive to profit and cash flow in the near term. Commenting on SpeeCo's profitability and cash generation profile, Blount's Senior Vice President and Chief Financial Officer, Calvin Jenness, stated, "Earnings before interest, taxes, and amortization ("adjusted EBITA") for the twelve months ended July 31, 2010 was $12.6 million. This metric indicates a solid profit to cash conversion rate that will be accretive to Blount's cash generation profile. While we will experience non-cash charges related to purchase accounting in calendar year 2010, SpeeCo is expected to be accretive to Blount profit in 2011."

Under the corporate structure going forward, Paul Valas, President and Chief Executive Officer of SpeeCo, will report to Mr. Collins and join the Blount senior leadership team. "We are excited about Blount's acquisition of SpeeCo and look forward to continuing our history of providing industry-leading, high quality products to our customers," Mr. Valas commented. "Blount brings a wealth of resources to SpeeCo, particularly a global distribution network, which will help drive our continued growth."

Founded in 1957, SpeeCo is the North American market leader in the manufacturing of log splitters and a leading distributor of parts and accessories to farm, ranch, and related markets. A key customer demographic for SpeeCo is the growing "ruralist" market segment, which consists of landowners who purchase outdoor equipment and supplies largely from farm and ranch retail and farm equipment dealers. SpeeCo's corporate headquarters and operations are located in Golden, Colorado. SpeeCo also has an office in Changzhou, China, where sourcing and engineering personnel are located. SpeeCo markets its products under a variety of brands, including SpeeCo® and Farmex.

The Toro Company Acquires Certain Assets of USPraxis

Acquisition broadens Toro's offering of compact utility equipment in the rental and landscape markets

BLOOMINGTON, Minn., Apr 30, 2010 -- The Toro Company today announced it has acquired certain assets from USPraxis, Inc., a manufacturer of outdoor power equipment. Through the acquisition, Toro adds a dedicated lineup of stump grinders, wood chippers and log splitters to its product portfolio to strengthen its offering to the rental market.

"Toro has a rich history of offering innovative products for rental and landscape professionals, starting with the introduction of the Toro(R) Dingo(R) compact utility loader in the 1990s and continuing with the launch of our popular TRX walk-behind trenchers and new STX tracked stump grinder," said Rick Rodier, general manager of Toro's Sitework Systems Business.

"USPraxis is an established brand in the rental industry known for innovative, high-quality professional products. The addition of these products allows Toro to continue to broaden and strengthen its compact equipment solutions for the rental and landscape markets." 

To complement the acquisition of these product lines, Toro also acquired, and will provide, a tip and blade sharpening service that offers a cost-effective way for rental stores to ensure their equipment is in optimum operating condition.

Moving forward, USPraxis products will be marketed under the Toro brand and sold through Toro's compact utility equipment distribution channel in the United States and international markets.

USPraxis has a solid reputation for its innovative lightweight cutting blades for stump grinding machines and for developing the industry's first walk-behind stump grinder with specialty blades that reduce weight and optimize cutting action.