Douglas Dynamics, Inc. (NYSE:PLOW), which designs, manufactures and sells snow and ice control equipment for light trucks, has completed the acquisition of substantially all the assets of TrynEx, Inc., which produces truck-mounted salt and sand spreader equipment under the brand name SnowEx.
TrynEx also provides turf application and industrial attachment products under the brand names TurfEx and SweepEx.
"Today's announcement is incredibly positive for both Douglas Dynamics and TrynEx and strengthens our position as a market leader in both snow and ice control solutions," said James L. Janik, President and Chief Executive Officer of Douglas Dynamics, Inc. "This transaction represents an opportunity for Douglas Dynamics to further enhance our product portfolio and expand the breadth and depth of our capabilities in snow and ice control, while also exploring new growth channels across market adjacencies and expanding our reach to new geographies."
"TrynEx is pleased to be joining the Douglas Dynamics family and we believe this is an exciting opportunity for our company to expand and grow as part of a larger organization," said Chuck Truan, President of TrynEx, Inc. "Both businesses have similar core values and serve a similar marketplace through different channels, which provides us with opportunities to carve out new markets, leverage shared expertise and introduce both companies' products to new audiences."
Douglas Dynamics has acquired substantially all the assets of TrynEx, Inc. for a purchase price of $26 million. Acquired assets include TrynEx's full line of product offerings from its SnowEx, TurfEx and SweepEx brands and access to TrynEx's network of approximately 1,500 authorized dealers worldwide spanning 26 countries. The acquisition of the TrynEx assets is expected to be accretive to earnings per share on a full-year basis and free cash flow positive on a standalone basis in 2014.
The acquisition was funded through the use of Douglas Dynamics' existing asset based revolving line of credit.
The current management of Douglas Dynamics will remain in place and continue to lead the combined Company. The TrynEx business will continue to operate as it does today as a division of Douglas Dynamics, marketing its SnowEx, TurfEx and SweepEx brands under the leadership of its current management team.
Upon completion of the deal, Douglas Dynamics will leverage its lean manufacturing expertise to deliver enhanced service to customers and drive synergies.