Douglas Dynamics acquires assets of TrynEx
Douglas Dynamics, Inc., a leading North American leader in the design, manufacture and sale of snow and ice control equipment for light trucks, has announced it has completed the acquisition of substantially all the assets of TrynEx, Inc., a leader in truck-mounted salt and sand spreader equipment under the brand name SnowEx. TrynEx also provides turf application and industrial attachment products under the brand names TurfEx and SweepEx.
"Today's announcement is incredibly positive for both Douglas Dynamics and TrynEx and strengthens our position as a market leader in both snow and ice control solutions," said James L. Janik, president and chief executive officer of Douglas Dynamics, Inc. "This transaction represents an opportunity for Douglas Dynamics to further enhance our product portfolio and expand the breadth and depth of our capabilities in snow and ice control, while also exploring new growth channels across market adjacencies and expanding our reach to new geographies."
"TrynEx is pleased to be joining the Douglas Dynamics family and we believe this is an exciting opportunity for our company to expand and grow as part of a larger organization," said Chuck Truan, president of TrynEx, Inc. "Both businesses have similar core values and serve a similar marketplace through different channels, which provides us with opportunities to carve out new markets, leverage shared expertise and introduce both companies' products to new audiences."
Details of the transaction
Douglas Dynamics has acquired substantially all the assets of TrynEx, Inc. for a purchase price of $ 26 million. Acquired assets include TrynEx's full line of product offerings from its SnowEx, TurfEx and SweepEx brands and access to TrynEx's network of approximately 1,500 authorized dealers worldwide spanning 26 countries. The acquisition of the TrynEx assets is expected to be accretive to earnings per share on a full-year basis and free cash flow positive on a standalone basis in 2014.
Douglas Dynamics remains in a strong financial position and is committed to its capital allocation strategy of paying a dividend to its shareholders, paying down debt and pursuing strategic acquisitions at disciplined valuations to add shareholder value.
The acquisition was funded through the use of Douglas Dynamics' existing asset based revolving line of credit.
For additional information on this transaction, see the company's current report on Form 8-K filed with the Securities and Exchange Commission today.