PORTLAND, OR (Augist 17, 2011) -- Blount International Inc. (NYSE: BLT) will acquire GenWoods HoldCo LLC and its wholly owned subsidiary, Woods Equipment Co. Woods is based in Oregon,Ill., with approximately $160 million in sales for the twelve months ended July 31, 2011. The acquisition will be structured as a merger and will be subject to customary terms and conditions, including U.S. antitrust clearance.
A newly formed subsidiary of Blount will merge with Woods Holdings and pay aggregate merger consideration of approximately $185 million in cash, subject to certain adjustments based on Woods' closing date working capital. The merger consideration will be financed with cash-on-hand and borrowings under its revolving credit facility. Pending regulatory clearance, the transaction is expected to close by the end of Q3 2011.
The acquisition of Woods provides numerous benefits to Blount, including:
- Increased distribution for Blount's farm, ranch, and agriculture end market business, particularly in the agricultural dealer channel
- Expanded product line of tractor attachments and aftermarket replacement parts, including the well-known Woods and TISCO brands, for Blount's farm, ranch, and agriculture business
- Leverage of Blount's manufacturing and product development expertise and global distribution and supply chain network, particularly product sourcing
- Enhanced North American manufacturing and distribution footprint through the addition of three manufacturing and five distribution facilities
"The acquisition of Woods significantly increases the scale of our farm, ranch, and agriculture business," said Josh Collins, Blount's Chairman and Chief Executive Officer. "Woods' excellent brands, strong market position, and experienced management team coupled with our global distribution and supply chain network will provide many sales and efficiency opportunities within our combined businesses."
Following the consummation of the transaction, Jerry Johnson, President of Woods' Attachment business unit; Bill Stuckert, President of Woods' Aftermarket Parts business unit; and Mark Miller, Chief Financial Officer of Woods, will report to Paul Valas, President of Blount's Farm, Ranch, and Agriculture division.
"We are excited to have Woods become part of Blount, a company that shares our belief that high quality products, innovation, and excellent customer service drive the growth of our business," said Johnson.
Bill Stuckert added, "Blount's product offering and farm and ranch retail distribution is a natural fit with our TISCO aftermarket replacement parts and dealer network. Blount's global supply chain infrastructure will bring resources that will greatly enhance our growth opportunities."
Founded in 1946, Woods is a manufacturer and marketer of equipment and replacement parts for the agriculture, grounds maintenance, and construction markets, primarily in North America. Woods manufactures, markets, and distributes agriculture and construction attachments and related replacement parts in its Attachment business unit, and it markets and distributes one of the largest selections of replacement parts for tractors and implements through its Aftermarket Parts business unit.
Woods offers its products under the brand names Woods, Alitec, Central Fabricators, Gannon, Wain-Roy, WoodsCare, and TISCO through a vast distribution network, including over 11,000 dealers nationwide, original equipment manufacturers, nationwide farm stores, an e-commerce portal, and tractor repair shops.
Blount manufactures replacement parts and equipment for consumers and professionals in select global end markets, including forestry; lawn and garden; farm, ranch, and agriculture; and concrete cutting and finishing, and is the market leader in manufacturing saw chain and guide bars for chain saws. 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/.