Alamo Group Inc. (NYSE: ALG) announced that it will acquire Petersen Industries, Inc., a Florida‑based manufacturer of truck‑mounted grapple loader equipment for the bulky waste collection market, for a total consideration of $166.5 million. The purchase price is financed with a mix of cash on hand and available credit facility capacity, and is roughly $150 million when adjusted for expected tax benefits. The transaction values Petersen at about 7.9 times its 2024 EBITDA, a multiple that reflects the company’s market leadership and the strategic fit with Alamo’s Industrial Equipment Division.
The deal is designed to strengthen Alamo’s Industrial Equipment portfolio, which has delivered double‑digit growth for seven consecutive quarters. Petersen’s product line will broaden Alamo’s reach into the growing bulky waste collection segment and create cross‑selling opportunities with Alamo’s existing vacuum truck and snow removal equipment. Management believes the acquisition will be accretive to growth and margins, and will generate recurring revenue from aftermarket parts and services. The transaction also offsets recent weakness in Alamo’s Vegetation Management Division, which saw a 9.0% decline in net sales in Q3 2025, by reinforcing the company’s strongest segment.
Alamo’s Q3 2025 earnings report showed a $2.10 EPS, missing analyst estimates of $2.63, largely due to higher operating costs and a one‑time restructuring charge. Revenue, however, beat expectations at $420 million, driven by a 4.7% increase in net sales compared with the same quarter a year earlier. The acquisition is positioned to help Alamo improve its earnings profile by adding a profitable, high‑margin business that complements its existing industrial offerings and provides a platform for future growth.
The transaction is expected to close in the first quarter of 2026, subject to regulatory approval and customary closing conditions. Alamo has indicated that the deal will be financed through a combination of cash reserves and credit facility availability, ensuring that the company maintains a strong balance sheet and liquidity position during the integration process.
The acquisition aligns with Alamo’s stated strategy of acquiring profitable, market‑leading companies that serve stable, steadily growing end markets. By integrating Petersen’s technology and dealer network, Alamo aims to unlock cost savings and revenue growth while broadening its industrial equipment offering. The deal is viewed as a strategic move to consolidate Alamo’s leadership in the industrial equipment space and to position the company for long‑term value creation.
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