ALAMO GROUP INC. ANNOUNCES ACQUISITION OF ROYAL TRUCK & EQUIPMENT

Rhea-AI Summary

Alamo Group Inc. acquires Royal Truck & Equipment, a leading manufacturer in the highway infrastructure and traffic control market.

Positive

• Alamo Group Inc. has acquired 100% of the outstanding equity capital of Royal Truck & Equipment.
• Royal Truck had an annual revenue of approximately $40 million in 2022 and $44 million as of August 2023.
• The acquisition aligns with Alamo Group's strategy of expanding into adjacent markets.
• Alamo Group sees compelling future opportunities in the highway safety equipment market.

Negative

• None.

SEGUIN, Texas, Oct. 10, 2023 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) announced that it has acquired 100% of the outstanding equity capital of Royal Truck & Equipment, Inc. ("Royal Truck"), a leading manufacturer of truck mounted highway attenuator trucks and other specialty trucks and equipment for the highway infrastructure and traffic control market.  Royal Truck's annual revenue was approximately $40 million in 2022 and the company had trailing twelve-month revenue of approximately $44 million as of the end of August, 2023.

Founded by Mr. Rob Roy in 1986, Royal Truck prides itself on developing innovative products designed to improve road work zone safety. The company is based in Shoemakersville, Pennsylvania and has approximately 50 employees. Royal Truck's products include truck mounted highway crash attenuator trucks, cone safety and traffic control trucks, and a broad range of other equipment focused on highway safety.  Mr. Roy currently serves as the President of Royal Truck and he will continue in this role for an agreed transition period following the closing. The company will become a part of Alamo's Industrial Equipment Division led by Michael Haberman.

Rob Roy, said, "I am immensely proud of the quality business my team and I have built over the past 37 years.  I am looking forward to Royal Truck becoming stronger and continuing its mission of product innovation, customer service and road and highway safety with Alamo Group."

Jeff Leonard, Alamo Group's President and Chief Executive Officer commented, "We are very pleased to have completed this acquisition and to have Royal Truck join the Alamo Group family of companies.  This acquisition aligns very closely with our long-term strategy of acquiring business operations in adjacent markets. Royal Truck represents our entry into the highway safety equipment market, a new platform where we see compelling future opportunities.  We are excited about the potential to accelerate Royal Truck's growth in an expanding market that should benefit from higher government infrastructure spending."

About Alamo Group
Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for vegetation management, infrastructure maintenance and other applications.  Our products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements, forestry equipment and related after-market parts and services.  The Company, founded in 1969, has approximately 4,350 employees and operates 27 plants in North America, Europe, Australia and Brazil as of June 30, 2023.  The corporate offices of Alamo Group Inc. are located in Seguin, Texas.

Forward Looking Statements
This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results.  Among those factors which could cause actual results to differ materially are the following:  adverse economic conditions which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, unanticipated acquisition results, increasing costs due to inflation, new or unanticipated effects of the COVID-19 pandemic, geopolitical risks, including effects of the war in Ukraine, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company's SEC reports.  The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

View original content:https://www.prnewswire.com/news-releases/alamo-group-inc-announces-acquisition-of-royal-truck--equipment-301952776.html

SOURCE Alamo Group Inc.

FAQ

What company did Alamo Group acquire?

Alamo Group acquired Royal Truck & Equipment.

What is Royal Truck's annual revenue?

Royal Truck had an annual revenue of approximately $40 million in 2022 and $44 million as of August 2023.

Who is the President of Royal Truck?

The President of Royal Truck is Mr. Rob Roy.

What is Alamo Group's strategy?

Alamo Group's strategy is to acquire business operations in adjacent markets.

What market is Alamo Group entering with this acquisition?

Alamo Group is entering the highway safety equipment market with this acquisition.