BUSINESS NEWS: The Toro Company to acquire Venture Products, Inc., manufacturer of Ventrac products
DGKN staff report
The Toro Company announced Jan. 21 that it has entered into an agreement to acquire privately-held Venture Products, Inc., the manufacturer of Ventrac-branded products, according to a news release.
“We are excited to become a part of The Toro Company and its family of leading brands,” Dallas Steiner, chief executive officer of Venture Products, Inc., stated in the release. “The Toro Company is committed to a culture that aligns with our employee values, has a rich history of success in the marketplace, and a proven track record of growing their brands. By joining with The Toro Company, it allows us to continue to serve our customers with authentic experiences and trusted products.”
Based in Orrville, Ventrac is a leading manufacturer of articulating turf, landscape, and snow and ice management equipment for the grounds, landscape contractor, golf, municipal and rural acreage markets.. For calendar year 2019, Ventrac generated net sales of approximately $100 million.
“Ventrac is well recognized in the industry for its market-leading innovation and commitment to meeting the diverse needs of customers,” Richard M. Olson, The Toro Company’s chairman and chief executive officer, said in the release. “This acquisition supports our growth strategy in the professional market with the addition of a strong brand and expanded product offering to customers in the turf, landscape, and snow and ice maintenance categories. We have long respected and admired the Ventrac team, and we look forward to helping them grow on the successful foundation they have built in Orrville, Ohio.”
Following the announcement, a statement on Ventrac’s Facebook page acknowledged how the news may have come as a surprise to customers.
“We know today’s news comes as a shock to many that have supported the Ventrac family,” the Facebook post states. “As a company, we are honestly excited about the new opportunities we will have to grow the Ventrac brand with The Toro Company. Ventrac will remain Ventrac. We will still be manufactured in Orrville, Ohio and we will still make the best tractors in America.”
The Toro Company will purchase Venture Products, Inc. for $167.5 million in cash, subject to certain adjustments, the news release states. The Toro Company expects to finance the transaction by borrowing under its existing revolving credit facility.
