Alta Equipment Group announced that it has acquired Ault Industries Inc., a privately held Canadian equipment distributor with locations in Ontario and Quebec.
“The acquisition of Ault represents Alta’s first investment in Canada for our growing construction segment,” said Ryan Greenawalt, Alta CEO. “We are extremely excited to partner with the Ault team as they have built a high-performing equipment dealership in the aggregate and mining space, a growing end market in their region and for Alta. In addition to entering the major construction markets of Toronto and Montreal, we also eagerly embrace a new relationship with McCloskey, a market leading OEM in the crushing and screening product category. We extend a warm welcome to the Ault team as they become part of the Alta family.”
Given Ault’s leading market position and strong brand relationships, Alta Company expects the acquisition to be accretive to the Company’s EBITDA to cash flow conversion and earnings per share ratios.
The total purchase price was $36.0 million, consisting of $23.2 million cash at close, a $2.2 million seller note, and $10.6 million worth of Alta’s common stock, which will be issued at $13 per share, equating to 818,473 shares vesting annually over a five-year period. The purchase price is subject to post-closing working capital adjustments.
Ault’s brand name, employees, and management team will remain in place post-close.
Alta has completed 16 acquisitions since its initial public offering in 2020, including Ault. The acquisitions have contributed $537 million in revenue, and $66 million in adjusted EBITDA.
More information on Ault, its products and applications can be found at https://ault.ca/en/.
Alta sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, heavy and compact earthmoving equipment, environmental processing equipment, cranes, paving and asphalt equipment and other material handling and construction equipment. Alta has operated as an equipment dealership for 39 years and has developed a branch network that includes more than 80 locations in Michigan, Illinois, Indiana, Ohio, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, Rhode Island, New York, Virginia, Nevada and Florida and the Canadian provinces of Ontario and Quebec.
Based in Livonia, Mich., Alta is No. 21 on the RER 100.