MILWAUKEE, Nov. 24, 2014 (GLOBE NEWSWIRE) — Douglas Dynamics, Inc. (NYSE:PLOW), North America’s premier manufacturer of vehicle attachments and equipment, announced on Monday that it has entered into a definitive agreement to acquire Henderson Products for $95 million in cash, subject to working capital, cash and other adjustments. The transaction is also subject to customary regulatory approvals and closing conditions and is expected to close before the end of the calendar year.
Headquartered in Manchester, Iowa, Henderson is the leading North American manufacturer of customized, turnkey snow and ice control solutions for heavy-duty trucks focused on state Departments of Transportation (DOT), counties, and municipalities. Henderson’s diverse product portfolio includes ice control equipment, snow plows, dump bodies, muni-bodies, and replacement parts. Henderson generated $76 million in net sales over the trailing twelve months ending September 30, 2014.
“The acquisition aligns perfectly with our core business and adds a layer of predictability and stability to our business, which is highlighted by Henderson’s excellent track record of 11 consecutive years of revenue growth,” said James L. Janik, Chairman, President, and Chief Executive Officer of Douglas Dynamics, Inc. “Henderson is the industry leader in the heavy-duty truck segment of the snow and ice control market and has a different customer base and sales cycle as compared to our core business. Henderson works with the municipal budgeting and planning cycle which provides a much higher degree of revenue visibility with purchase decisions that are generally pre-planned and less driven by near-term weather conditions.”
Janik explained, “The addition of Henderson cements Douglas Dynamics as the North American leader in snow and ice control across all truck segments. It expands our product portfolio, broadens our geographic footprint, and adds a dynamic and productive workforce and management team. We will also leverage our Douglas Dynamics Management System, including our lean manufacturing expertise, to work with Marty Ward, President/CEO of Henderson, and his leadership team to improve business efficiency and drive margin growth in the business.”
“Douglas Dynamics’ track record of success, customer centric focus, and culture of integrity make them the perfect partner for our business,” said Marty Ward. “Both businesses have strategic expertise in snow and ice control which can be leveraged to enhance the service and capabilities we provide to our customers and support our continued growth. We look forward to joining the Douglas Dynamics team and sharing expertise in 2015 and beyond.”
Douglas Dynamics plans to fund the acquisition through a combination of cash and the amendment of its existing term loan agreement. The Company plans to seek the consent of the lenders under its existing term loan agreement to extend the maturity date of the agreement from 2018 to 2021.
Henderson includes a 170,000 square foot manufacturing facility where most of its 350+ employees are based. The Company also maintains five truck equipment upfit facilities located in New York, Iowa, Ohio, New Jersey, and Illinois, which provide turnkey assembly and delivery of heavy duty trucks to state DOTs, counties, and municipalities.
(Image courtesy of Henderson Products, Inc. website)