The toro company acquires utility trenchers, vibratory plows and
directional drills
Bloomington, minn.--(business wire)--the toro company (nyse:ttc) announced today that it has acquired certain utility and underground product assets of astec underground, inc., a wholly-owned subsidiary of astec industries, inc. (nasdaq: aste). terms of the transaction were not disclosed. through the acquisition, toro has acquired astec underground’s equipment line of vibratory plows, trenchers and horizontal directional drills for the underground utilities market. typically used in the installation, repair and replacement of utilities with minimal impact on surrounding landscapes or structures, these products are designed for power distribution, telecommunications, utility companies, and landscape and irrigation contractors. “this acquisition helps further grow toro’s product presence in the landscape and ground engaging markets, along with providing access to a new category close to our core businesses,” said rick rodier, general manager of toro’s sitework systems business. “the underground utilities space represents a market in which we don’t compete today, but one we believe provides great opportunity to drive global share growth in these new categories.” based in chattanooga, tennessee, astec industries, inc. is a manufacturer of specialized equipment for asphalt road building, aggregate processing, pipeline and utility trenching, and wood processing. the products toro is acquiring, which does not include astec’s trencor product line, are manufactured at the astec underground facility in loudon, tennessee. about the toro company the toro company (nyse: ttc) is a leading worldwide provider of turf and landscape maintenance equipment, and precision irrigation systems. with sales of nearly $1.9 billion in fiscal 2011, toro’s global presence extends to more than 90 countries through its reputation of world-class service, innovation and turf expertise. since 1914, the company has built a tradition of excellence around a number of strong brands to help customers care for golf courses, sports fields, public green spaces, commercial and residential properties, and agricultural fields. more information is available at www.toro.com. about astec industries, inc. astec industries, inc. (www.astecindustries.com) is a manufacturer of specialized equipment for building and restoring the world's infrastructure. astec's manufacturing operations are divided into four primary business segments: asphalt production equipment, mobile asphalt paving equipment, aggregate processing and mining equipment, and underground boring, directional drilling and trenching equipment. additionally, the other group contains one subsidiary that manufactures equipment used for wood processing and recycling and one that is a company-owned dealership located in australia. safe harbor statements made in this news release, which are forward-looking, are made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied. these uncertainties include factors that affect all businesses operating in a global market as well as matters specific to toro. particular risks and uncertainties that may affect the company’s operating results or overall financial position at the present include: slow or negative growth rates in global and domestic economies, resulting in rising or persistent unemployment and weakened consumer confidence; the threat of terrorist acts and war, which may result in contraction of the u.s. and worldwide economies; drug cartel-related violence, which may disrupt our production activities and maquiladora operations based in juarez, mexico; fluctuations in the cost and availability of raw materials and components, including steel, engines, hydraulics, resins and other commodities and components; fluctuating fuel and other costs of transportation; the impact of abnormal weather patterns, natural disasters and global pandemics; the level of growth or contraction in our key markets; government and municipal revenue, budget and spending levels, which may negatively impact our grounds maintenance equipment business in the event of reduced tax revenues and tighter government budgets; dependence on the home depot as a customer for the residential segment; elimination of shelf space for our products at retailers; inventory adjustments or changes in purchasing patterns by our customers; market acceptance of existing and new products; increased competition; our ability to achieve the revenue growth, operating earnings and employee engagement goals of our multi-year employee initiative called “destination 2014”; our increased dependence on international sales and the risks attendant to international operations and markets, including political, economic and/or social instability in the countries in which we manufacture or sell our products resulting in contraction or disruption of such markets; credit availability and terms, interest rates and currency movements including, in particular, our exposure to foreign currency risk; our relationships with our distribution channel partners, including the financial viability of distributors and dealers; our ability to successfully achieve our plans for and integrate acquisitions and manage alliances or joint ventures, including red iron acceptance, llc; the costs and effects of changes in tax, fiscal, government and other regulatory policies, including rules relating to environmental, health and safety matters, and tier 4 emissions requirements; unforeseen product quality or other problems in the development, production and usage of new and existing products; loss of or changes in executive management or key employees; ability of management to manage around unplanned events; our reliance on our intellectual property rights and the absence of infringement of the intellectual property rights of others; and the occurrence of litigation or claims. in addition to the factors set forth in this paragraph, market, economic, financial, competitive, legislative, governmental, weather, production and other factors identified in toro's quarterly and annual reports filed with the securities and exchange commission, could affect the forward-looking statements in this press release. toro undertakes no obligation to update forward-looking statements made in this release to reflect events or circumstances after the date of this release.
