Alamo Group's $167M Play for Industrial Dominance

CHICAGO, IL – December 12, 2025 – In a significant move that signals a consolidation trend within the specialized industrial equipment sector, Alamo Group Inc. has announced its definitive agreement to acquire Petersen Industries, Inc. for approximately $166.5 million. The transaction brings Petersen, a leading innovator in truck-mounted grapple loaders for bulky waste collection, under the umbrella of Alamo, a global manufacturing powerhouse. Advised exclusively by D.A. Davidson & Co., this acquisition is far more than a simple line-item purchase; it represents a calculated step in Alamo Group's long-term strategy to dominate niche, high-growth industrial markets.

A Legacy of Strategic Growth

For Alamo Group, the purchase of Petersen Industries is the latest chapter in a long and successful story of growth through strategic acquisition. Since its founding in 1969, the company has consistently supplemented its organic growth by identifying and integrating businesses that either complement its existing product lines or establish a commanding presence in new, stable markets. This disciplined approach has transformed Alamo from a regional player into a global leader in industrial and vegetation management equipment.

A look at the company's history reveals a clear pattern. Early acquisitions in the 1980s broadened its capabilities in agricultural mowing, while the 1990s saw a major push into international markets with the purchase of UK-based firms like McConnel Ltd. and Bomford-Turner Ltd. The turn of the millennium marked a deeper focus on the industrial sector with the 2000 acquisition of Schwarze Industries, a prominent manufacturer of street sweeping equipment. More recently, the 2023 purchase of Royal Truck & Equipment propelled Alamo into the critical highway safety market.

The Petersen acquisition fits this blueprint perfectly. As Robert Hureau, Alamo Group’s President and Chief Executive Officer, noted, “This acquisition nicely ties to our strategy of acquiring profitable companies with innovative and attractive product portfolios that are market leaders serving stable, steadily growing, end-markets.” Petersen, with its strong brand recognition and leadership in the governmental waste collection sector, is precisely the kind of company Alamo targets: a profitable, innovative leader in a non-cyclical industry.

The Power of Specialized Innovation

At the heart of this deal is the unique technology and market position of Petersen Industries. For over 65 years, Petersen has been a pioneer in the field of bulky waste collection. Its truck-mounted grapple loaders are essential tools for municipalities, public works departments, and private waste haulers, transforming a once-dangerous and labor-intensive task into a safer, faster, and more efficient process. The company's products are engineered to handle difficult-to-manage waste streams, from discarded furniture and appliances to storm debris and large-scale yard waste.

This specialization has allowed Petersen to carve out a leadership position, particularly among governmental clients who rely on durable and reliable equipment for essential public services. With annual revenues of approximately $75 million, Petersen has demonstrated its ability to serve this demanding market effectively. The innovation embedded in its products is a key driver of its success, reflecting a broader industry trend toward equipment that enhances operational efficiency and worker safety.

By integrating Petersen into its Industrial Equipment Division, Alamo Group not only gains a market-leading product line but also inherits a legacy of engineering excellence. Alamo plans to continue operations at Petersen's existing facility in Lake Wales, Florida, ensuring continuity while seeking opportunities to leverage its own extensive supply chain and dealer networks. This synergy is expected to unlock significant future cost savings and revenue growth, allowing Petersen's innovative technology to reach an even wider market.

Deconstructing the Deal's Financials

The financial structure of the acquisition underscores its strategic value. The approximately $166.5 million purchase price, which will be financed through a combination of cash on hand and Alamo's existing credit facility, reflects a carefully considered valuation. When adjusted for the present value of expected tax benefits, the effective purchase price is closer to $150 million. This represents a valuation multiple of approximately 7.9 times Petersen's earnings before interest, taxes, depreciation, and amortization (EBITDA), a figure that appears favorable, especially when potential future synergies are not yet factored in.

This financial discipline is possible due to Alamo Group's remarkably strong balance sheet. The company has maintained low debt levels and consistent cash generation, providing it with the flexibility to pursue an "increasingly active M&A pipeline" without over-leveraging its resources. The acquisition is projected to be immediately accretive to Alamo's growth and margins, a key metric for investors.

Furthermore, a significant component of Petersen’s value lies in its recurring revenue streams. The aftermarket for parts and services is a stable and profitable segment in the industrial equipment world. Alamo Group anticipates that Petersen will deliver solid, recurring revenue from these offerings, providing a predictable financial cushion and enhancing the overall return on investment. This focus on the complete product lifecycle—from initial sale to long-term maintenance—is a hallmark of a mature and sophisticated industrial business strategy.

The Guiding Hand of M&A Expertise

Facilitating this complex transaction was D.A. Davidson & Co., which served as the exclusive financial advisor to Alamo Group. The deal highlights the investment bank's growing prowess and deep expertise within the diversified industrials and machinery sectors. For middle-market companies like Alamo, navigating the intricacies of a major acquisition requires a partner with specialized knowledge and a proven track record.

Eric Stetler, Managing Director and Head of Diversified Industrials and M&A at D.A. Davidson, commented on the strategic fit, stating, “Petersen is a great addition to Alamo’s industrial equipment segment.” This sentiment underscores the advisor's role not just in executing a transaction, but in identifying and validating strategic alignment. The successful completion of this deal adds to D.A. Davidson's momentum, reinforcing its reputation as a key player in facilitating growth and consolidation across the industrial landscape.

As Alamo Group moves to finalize the acquisition, pending regulatory approval, the move is being watched closely by industry analysts. It serves as a powerful case study in how targeted M&A can be used to build a resilient, diversified, and market-leading industrial conglomerate. The integration of Petersen's specialized technology into Alamo's global platform is poised to create significant value and strengthen its competitive moat in the essential market of waste management infrastructure.