Blount International, Inc. (NYSE: BLT) (“Blount”) announced August 17 the execution of a definitive agreement to acquire GenWoods HoldCo, LLC (“Woods Holdings”) and its wholly owned subsidiary, Woods Equipment Company (“Woods”), a manufacturer and marketer of equipment and replacement parts primarily for the agriculture end market.
Woods is based in Oregon, Ill., with approximately $160 million in sales for the 12 months ended July 31, 2011. The acquisition will be structured as a merger and will be subject to certain customary terms and conditions, including U.S. antitrust clearance. Pursuant to the terms of the merger agreement, a newly formed subsidiary of Blount will merge with and into Woods Holdings and pay aggregate merger consideration of approximately $185 million in cash, subject to certain adjustments based on Woods’ closing date working capital. The merger consideration will be financed with cash-on-hand and borrowings under its revolving credit facility. Pending regulatory clearance, the transaction is expected to close by the end of Q3 2011.
The acquisition of Woods provides numerous benefits to Blount, including:
Increased distribution for Blount’s farm, ranch and agriculture end market business, particularly in the agricultural dealer channel
Expanded product line of tractor attachments and aftermarket replacement parts, including the well-known Woods and TISCO brands, for Blount’s farm, ranch and agriculture business
Leverage of Blount’s manufacturing and product development expertise and global distribution and supply chain network, particularly product sourcing
Enhanced North American manufacturing and distribution footprint through the addition of three manufacturing and five distribution facilities
“The acquisition of Woods significantly increases the scale of our farm, ranch and agriculture business,” said Josh Collins, Blount’s chairman and chief executive officer. “Woods’ excellent brands, strong market position, and experienced management team — coupled with our global distribution and supply chain network — will provide many sales and efficiency opportunities within our combined businesses. There is a long list of value creation opportunities in this acquisition.”
Following the consummation of the transaction, Jerry Johnson, president of Woods’ Attachment business unit; Bill Stuckert, president of Woods’ Aftermarket Parts business unit; and Mark Miller, chief financial officer of Woods, will report to Paul Valas, president of Blount’s Farm, Ranch and Agriculture division. Commenting on the acquisition, Valas stated, “Woods is an excellent strategic fit for our business, and the combination greatly expands our product offering and distribution network.”
Jerry Johnson stated, “We are excited to have Woods become part of Blount, a company that shares our belief that high-quality products, innovation and excellent customer service drive the growth of our business.”
Bill Stuckert added, “Blount’s product offering and farm and ranch retail distribution is a natural fit with our TISCO aftermarket replacement parts and dealer network. Blount’s global supply chain infrastructure will bring resources that will greatly enhance our growth opportunities.”
Blount is a leader in the design, manufacturing and marketing of replacement parts and equipment for consumers and professionals in select global end markets, including forestry, lawn and garden; farm, ranch and agriculture; and concrete cutting and finishing, as well as the market leader in manufacturing saw chain and guide bars for chain saws. Blount sells its products in more than 100 countries around the world. For more information about Blount and the Woods acquisition, visit www.blount.com.