Alamo group inc. (nyse:alg) completed the acquisition of morbark, llc from a group of shareholders.

Alamo group inc. (nyse:alg) entered into a definitive securities purchase agreement to acquire morbark, llc from a group of shareholders for approximately $350 million on september 11, 2019. at closing, an escrow amount of $3.32 million will be deposited into the escrow account pursuant to the terms of the escrow agreement and $5 million will be held back as sellers rep holdback deposit. the purchase price is net of cash and is subject to certain adjustments. alamo group inc. is working with its banking group to amend and expand its current credit facilities to accommodate the acquisition. upon completion, morbark, llc will become a part of alamo group inc.’s industrial division led by jeff leonard. morbark, llc reported sales of $233 million for the 12 months ending july 2019. dave herr, president of morbark, llc, will continue in this role. the acquisition is subject to a number of conditions, including the receipt of regulatory approvals, third party consents, approval under the hart-scott-rodino antitrust improvements act, execution of escrow agreement, ancillary agreements and other pre-closing requirements. as on october 1, 2019, fcc granted early termination notice for the transaction. the transaction is expected to close in the fourth quarter of 2019. baird financial corporation acted as financial advisor to stellex capital management lp and morbark, llc. gerry williams, frank mugabi, paolo morante, darius gambino, julia kovacs, catherine campbell and angela vadala of dla piper llp (us) acted as legal advisors to stellex capital management lp and morbark, llc. suntrust bank, n.a. acted as the escrow agent in the transaction. alamo group inc. (nyse:alg) completed the acquisition of morbark, llc from a group of shareholders on october 24, 2019. the consideration was paid on a debt free basis and subject to certain post-closing adjustments. the acquisition includes the products sold under the morbark, rayco, denis cimaf and boxer brand names and alamo group intends to maintain the morbark brands in the market place. in connection with the acquisition, alamo group expanded its credit facility from $250 million to $650 million to accommodate the event and the ongoing needs of the combined entities. the new credit facility has a five-year duration and consists of a $300 million term loan and a $350 million revolving line of credit. the new credit facility includes all of the banks involved in the previous arrangement, plus two new participants.
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