ALAMO GROUP INC. TO ACQUIRE BANDIT INDUSTRIES
SEGUIN, Texas, November 19, 2013 — Alamo Group Inc. (NYSE: ALG) announced that it has entered into a letter of intent to acquire Bandit Industries, Inc. and its related affiliates. Bandit is a leader in the design, manufacture, distribution and service of wood and brush chippers, whole tree chippers, stump grinders, forestry mowers and other related equipment. Bandit’s 2012 fiscal year sales were approximately $107 million and it has over 400 employees. Alamo Group and Bandit have received approval for the acquisition under the Hart-Scott-Rodino Act. The finalization of the transaction is subject to completion of an acquisition agreement and certain other pre-closing requirements.
Based in Remus, Michigan, Bandit principally sells its products across North America and a variety of international markets through a combination of independent agents and dealers as well as direct to certain markets and customers. Bandit was originally founded in 1983 by Mike Morey, Sr. and was principally controlled by Mike, his wife Dianne and his cousin Jerry Morey, the President of Bandit. The Moreys will continue to be involved with the Company following the sale during the transition to Alamo Group. Upon completion of the transaction, Bandit is expected to become part of Alamo’s North American Industrial Division. Manufacturing and operations for Bandit will continue at Bandit’s existing facilities in Michigan.
Ron Robinson, Alamo Group’s President and Chief Executive Officer commented, “This is an exciting development for Alamo. Bandit is a well-respected and major player in the tree care, land and utility line clearing, recycling and biomass energy markets. This acquisition would greatly broaden our presence in the area of vegetation maintenance. We believe this combination would be further enhanced by Alamo’s strong international presence.”
Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for right-of-way maintenance and agriculture. Our products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, pothole patchers, excavators, vacuum trucks, agricultural implements and related after-market parts and services. The Company, founded in 1969, had approximately 2,500 employees and operates eighteen plants in North America and Europe. 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.