Yesterday Milwaukee-based Douglas Dynamics Inc. announced that it has entered into a definitive agreement to acquire Henderson Products for $95 Million in cash. This acquisition instantly catapults Douglas Dynamics into the municipal snow market and further solidifies their position as a leader in the snow and ice control industry. As of this morning their stock (PLOW) increased from $23.02 to a high of $24.17.
Headquartered in Manchester, Iowa, Henderson is the leading North American manufacturer of customized, turnkey snow and ice control solutions for heavy-duty trucks focused on state Departments of Transportation (DOT), counties, and municipalities. Henderson's diverse product portfolio includes ice control equipment, snow plows, dump bodies, muni-bodies, and replacement parts. Henderson generated $76 million in net sales over the twelve months ending September 30, 2014.
Last May Douglas Dynamics also acquired Trynex International in an attempt to broaden their scope and hedge against milder winters. The Trynex product line includes the brands SnowEx, TurfEx and SweepEx and Douglas gained access to a strong network of authorized distributors, dealers and loyal customers with the acquisition.
The purchase of Henderson products will give them similar access to an even stronger network that is more reliable and has a slightly different sales cycle.
"The acquisition aligns perfectly with our core business and adds a layer of predictability and stability to our business, which is highlighted by Henderson's excellent track record of 11 consecutive years of revenue growth," said James L. Janik, Chairman, President, and Chief Executive Officer of Douglas Dynamics, Inc.
Henderson includes a 170,000 square foot manufacturing facility where most of its 350+ employees are based. The Company also maintains five truck equipment upfit facilities located in New York, Iowa, Ohio, New Jersey, and Illinois, which provide turnkey assembly and delivery of heavy duty trucks to state DOTs, counties, and municipalities.
These recent acquisitions just highlight the influence coming from the stock holders of Douglas Dynamics. By acquiring Trynex, Douglas instantly increased its footprint with salt spreaders and turf equipment, and with the acquisition of Henderson to capture the municipal market it’s clear that they are striving for strategic diversity in their acquisitions and their overall business model.
Marty Ward, President/CEO of Henderson said "Douglas Dynamics' track record of success, customer centric focus, and culture of integrity make them the perfect partner for our business. Both businesses have strategic expertise in snow and ice control which can be leveraged to enhance the service and capabilities we provide to our customers and support our continued growth. We look forward to joining the Douglas Dynamics team and sharing expertise in 2015 and beyond."
About Central Parts Warehouse
As a leading distributor of America’s most trusted snow and ice brands including Western, Fisher, SnowEx, Boss, Meyer and Snowdogg, Central Parts Warehouse is recognized as the definitive source for information, products and customer support in North America. For more than 25 years, the company has been supplying quality OEM and Aftermarket parts and delivering them with speed and accuracy.
About Douglas Dynamics
Home to the most trusted brands in the industry, Douglas Dynamics is North America's premier manufacturer of vehicle attachments and equipment. For more than 65 years, the company has been innovating products that not only enable people to perform their jobs more efficiently and effectively, but also enable businesses to increase profitability. Our commitment to continuous improvement enables us to consistently produce the highest quality products and drive shareholder value. The Douglas Dynamics' portfolio includes snow and ice management attachments sold under the BLIZZARD®, FISHER®, SNOWEX® and WESTERN® brands, turf care equipment under the TURFEX® brand, and industrial maintenance equipment under the SWEEPEX® brand. Additional information regarding Douglas Dynamics is available at www.douglasdynamics.com.
Henderson is the leading North American manufacturer of customized, turnkey snow and ice control equipment solutions for heavy duty trucks focused on State Departments of Transportations (DOTs), counties, and municipalities. Henderson's expansive product portfolio includes ice-control equipment, snow plows, dump bodies, muni-bodies, and replacement parts. The Company is based in Manchester, IA. Additional information regarding Henderson is available at www.Hendersonproducts.com
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