The Toro Company has entered an agreement to acquire the Boss professional snow and ice management business of Northern Star Industries.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close during Toro’s fiscal 2015 first quarter.
Based in Michigan, Boss designs, manufacturers and sells snowplows, salt and sand spreaders, as well as related parts and accessories for light- and medium-duty trucks, ATVs, UTVs and loaders.
Boss sales in 2014 are expected to be approximately $125 million.
The purchase price is approximately $227 million, which Toro will pay primarily in cash except for $30 million that will be paid in the form of a three-year unsecured promissory note.
Toro plans to fund the cash portion of the purchase price with cash on hand and borrowings under a new five-year unsecured revolving credit facility that includes a senior term loan. Toro expects this acquisition to be slightly accretive to fiscal 2015 earnings.