The Toro Company acquired BOSS professional snow and ice management business (Northern Star Industries, Inc.) for approximately $227 million, a transaction completed in November 2014, structured as combination (primarily cash plus a $30 million three-year unsecured promissory note).
BOSS professional snow and ice management business (Northern Star Industries, Inc.) operates in Professional, is based in Iron Mountain, Michigan, United States, had revenue of about approximately $125 million (anticipated 2014 sales). Announced October 27, 2014 and closed November 14, 2014, Toro acquired the BOSS professional snow-and-ice management business of privately held Northern Star Industries for about $227 million, paid mostly in cash with $30 million in the form of a three-year unsecured promissory note; the cash portion was funded from cash on hand and a new five-year unsecured revolving facility. Based in Iron Mountain, Michigan, BOSS designs, manufactures and sells snowplows, salt and sand spreaders and related parts for light and medium-duty trucks, ATVs, UTVs and loaders, with anticipated 2014 sales of roughly $125 million.
BOSS moved Toro into the counter-seasonal snow-and-ice category and strengthened relationships with professional contractors through a well-established North American distribution channel and efficient manufacturing operations.
Counter-seasonal product portfolio, broad North American distribution channel, efficient manufacturing operations Professional segment (BOSS brand)
With the addition of BOSS to our existing market-leading professional contractor businesses, we are even better positioned to strengthen and grow our relationships with these important customers... We've long been interested in the professional snow and ice management category.Michael J. Hoffman, Chairman and CEO, The Toro Company
As a privately-held business in a smaller community, it is essential to us that BOSS transition to a company that not only is well-positioned to take us to the next level but also shares our commitment to innovation, customers, employees and the communities in which we live and work.David Brule II, President, BOSS
Advisory firms were not disclosed for this transaction.