Toromont Acquires Ownership Stake In AVL Manufacturing Inc., Growing Presence in Power Generation Industry
Toromont Industries Ltd. has acquired a 60-percent ownership stake in AVL Manufacturing Inc., a leader in the design and fabrication of power generation and storage enclosures. AVL operates in Hamilton, Ontario, Canada, and currently serves the data center market across eastern North America. The purchase price for the transaction will be paid in a combination of cash (using available funds) and shares of Toromont. The transaction is subject to customary post-closing adjustments.
Also, Toromont has committed to purchasing the remaining 40 percent ownership at agreed-upon dates through 2031, based upon underlying business performance. The acquisition, while accretive, is not expected to have an overall material impact on Toromont’s combined revenue, earnings or balance sheet in the near term.
“Enclosures for standby and prime power are part of an important and growing market segment in North America, which includes supporting leading technology companies’ data center needs,” said Mike McMillan, president and CEO of Toromont. “This acquisition adds complementary capabilities to our product and service offerings, secures supply for our Toromont Power Systems business, and provides the opportunity to expand our market to other regions. We are pleased to welcome the AVL team to the Toromont family and we look forward to building our business together.
“AVL Manufacturing will continue to operate as it does today, under the leadership of Vince DiCristofaro, president of AVL. This will enable a smooth transition and support business continuity going forward for our customers and new team members.”
“On behalf of the entire team at AVL, we look forward to partnering with Toromont as we leverage our combined skills and knowledge to address a rapidly growing market,” said Vince DiCristofaro. “We expect to continue serving our customers with best-in-class design and manufacturing capabilities to serve their needs now and in the future.”
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.