Valmont to Acquire HR Products, Australian Leader in Irrigation Parts
07 July 2023 - 10:16PM
Business Wire
Valmont® Industries, Inc. (NYSE: VMI), a global leader that
provides vital infrastructure and advances agricultural
productivity while driving innovation through technology, today
announced it has entered into a definitive agreement to acquire HR
Products, a leading wholesale supplier of irrigation parts in
Australia, expanding the Company’s geographic footprint and growing
its parts presence in a key agriculture market.
“Aftermarket parts and services are a critical component of our
global agriculture growth strategy, as it allows us to better serve
our customers through extended offerings and expands our total
addressable market,” said Joshua Dixon, President of Global
Irrigation. “Due to the long life cycle of irrigation equipment,
there is a substantial market to replace wearable parts. This
acquisition positions us very well to meet this demand, leveraging
our existing Valley® dealer network for distribution and service,
and large installed machine base in the region to grow recurring,
high-value revenue streams and help lessen the cyclicality in our
agriculture business.”
HR Products provides a broad range of irrigation products to
serve the agriculture and landscaping industries. The company was
established in Perth, Western Australia in 1979, and has grown to
nearly 100 employees and six warehouse facilities, with an
extensive dealer network across the country that further
strengthens Valmont’s market leadership.
Dixon continued, “Australia is a well-developed agriculture
market and the region is focused on converting from flood
irrigation as it has experienced persistent water supply
challenges. HR Products has a proven and successful distribution
model with strong customer relationships and robust operations
across the geographically-diverse country. We are excited to
welcome the HR Products team to Valmont and look forward to
integrating the business and providing further value to Australian
agriculture customers.”
The transaction will be funded with cash on hand and is expected
to be immediately accretive to earnings, with Year 1 revenue of
approximately US $45 million. The transaction is expected to close
in the third quarter of 2023 and is subject to customary closing
conditions. No further financial details were disclosed.
About Valmont Industries, Inc.
For over 75 years, Valmont has been a global leader in creating
vital infrastructure and advancing agricultural productivity.
Today, we remain committed to doing more with less by innovating
through technology. Learn more about how we’re Conserving
Resources. Improving Life.® at valmont.com.
Concerning Forward-Looking Statements
This release contains forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on assumptions that
management has made in light of experience in the industries in
which Valmont operates, as well as management’s perceptions of
historical trends, current conditions, expected future developments
and other factors believed to be appropriate under the
circumstances. As you read and consider this release, you should
understand that these statements are not guarantees of performance
or results. They involve risks, uncertainties (some of which are
beyond Valmont’s control) and assumptions. Although management
believes that these forward-looking statements are based on
reasonable assumptions, you should be aware that many factors could
affect Valmont’s actual financial results and cause them to differ
materially from those anticipated in the forward-looking
statements. These factors include among other things, the
continuing and developing effects of the pandemic including the
effects of the outbreak on the general economy and the specific
economic effects on the Company’s business and that of its
customers and suppliers, risk factors described from time to time
in Valmont’s reports to the Securities and Exchange Commission, as
well as future economic and market circumstances, industry
conditions, company performance and financial results, operating
efficiencies, availability and price of raw material, availability
and market acceptance of new products, product pricing, domestic
and international competitive environments, geopolitical risks, and
actions and policy changes of domestic and foreign governments. The
Company cautions that any forward-looking statement included in
this press release is made as of the date of this press release and
the Company does not undertake to update any forward-looking
statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20230706073907/en/
Jorden Hansen jorden.hansen@valmont.com
Valmont Industries (NYSE:VMI)
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