Alta Equipment Group Inc. has entered into a definitive agreement to acquire Burris Equipment Co., a supplier of market leading construction and turf equipment with three locations in Illinois, not far from Chicago.
Burris is a dealer for Case, Wacker Neuson, Jacobsen, Ventrac, Stihl and other brands. It also rents mobile elevating work platforms, air compressors and tools, climate control equipment, compaction equipment, concrete/masonry equipment, earthmoving and jobsite machinery, electric tools, forklifts, lawn and landscape equipment, light towers, generators, pressure washers, pumps, welders, plumbing and pipe equipment, professional turf and golf course equipment, snow removal and trench safety gear.
“The acquisition of Burris will not only yield immediately accretive returns to shareholders but will also notably enhance our business in Illinois,” said Ryan Greenawalt, Alta Equipment CEO. “In addition to adding important infrastructure and industry talent to the Chicago area in our Construction Equipment segment, we also eagerly embrace new OEM relationships stemming from the Burris acquisition, while simultaneously expanding with existing OEM partners to best serve Burris customers. This acquisition will fortify our product support presence and rental capabilities in the market, opening doors for the growth of our high-margin parts and service business. We extend a warm welcome to the Burris team as they become part of the Alta family.”
Strategic and financial highlights
- Diversifies product portfolio and end markets in the Chicago area and expands Alta’s infrastructure in the region with three new branches in Joliet, Waukegan and Lakemoor.
- Burris generated approximately $40.6 million in revenue, $1.9 million in net income and EBITDA of $4.6 million for the trailing 12-month period through July 2023.
- The deal is structured as an asset acquisition allowing for step-up in tax basis of assets acquired.
Additional transaction details
- The purchase price is $14.0 million in cash, subject to working capital adjustments.
- The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2023.
- Including Burris, since Alta’s initial public offering in 2020, Alta has completed 15 acquisitions which have contributed $487 million in revenue, and $58 million in adjusted EBITDA.
- More information on Burris, its products and applications can be found at https://burrisequipment.com/home.