Alta Equipment Group Inc. announced that it has entered into a definitive agreement to acquire Burris Equipment Company, a supplier of construction and turf equipment with three locations in Illinois.
"The acquisition of Burris will not only yield immediately accretive returns to shareholders but will also notably enhance our business in Illinois," said Ryan Greenawalt, chief executive officer of Alta.
"In addition to adding important infrastructure and industry talent to the Chicago area in our construction equipment segment, we also eagerly embrace new OEM relationships stemming from the Burris acquisition, while simultaneously expanding with existing OEM partners to best serve Burris customers.
"This acquisition will fortify our product support presence and rental capabilities in the market, opening doors for the growth of our high-margin parts and service business. We extend a warm welcome to the Burris team as they become part of the Alta family."
Strategic, Financial Highlights
- Diversifies product portfolio and end markets in the Chicago area and expands Alta's infrastructure in the region with three new branches in Joliet, Waukegan and Lakemoor.
- Burris generated approximately $40.6 million in revenue, $1.9 million in net income and EBITDA of $4.6 million for the trailing twelve-month period through July 2023.
- Deal is structured as an asset acquisition allowing for step-up in tax basis of assets acquired.
Additional Transaction Details
- The purchase price is $14.0 million in cash, subject to working capital adjustments.
- The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2023.
- Including Burris, since the company's initial public offering in 2020, Alta has completed 15 acquisitions which have contributed $487 million in revenue, and $58 million in Adjusted EBITDA.
For more information, visit www.altaequipment.com and https://burrisequipment.com/home.
