Douglas Dynamics Acquires Boss Snowplow Assets for $210M

Ticker: PLOW · Form: 8-K · Filed: 2024-09-12T00:00:00.000Z

Sentiment: bullish

Topics: acquisition, debt, expansion

Related Tickers: TTC

TL;DR

DOUGLAS DYNAMICS just bought BOSS SNOWPLOW assets for $210M to boost its snow game.

AI Summary

Douglas Dynamics, Inc. announced on September 10, 2024, the completion of its acquisition of the assets of Boss Snowplow, a division of The Toro Company. The transaction involved a cash purchase price of $210 million. This acquisition is expected to significantly expand Douglas Dynamics' product offerings and market reach in the snow and ice management industry.

Why It Matters

This acquisition allows Douglas Dynamics to significantly expand its presence in the snow and ice management market by integrating the well-known Boss Snowplow brand and its product lines.

Risk Assessment

Risk Level: medium — The acquisition involves a significant cash outlay and integration risks, which could impact the company's financial performance if not managed effectively.

Key Numbers

Key Players & Entities

FAQ

What specific assets were acquired from Boss Snowplow?

The filing states that Douglas Dynamics acquired the assets of Boss Snowplow, a division of The Toro Company, but does not detail the specific assets included in the transaction.

What is the expected impact of this acquisition on Douglas Dynamics' revenue?

The filing does not provide specific revenue projections resulting from the acquisition, but indicates it is expected to expand the company's product offerings and market reach.

Were there any financing arrangements for the $210 million purchase price?

The filing indicates the transaction was a cash purchase, but does not detail the source of the funds used for the $210 million.

When did the acquisition of Boss Snowplow assets officially close?

The acquisition of the assets of Boss Snowplow was completed on September 10, 2024, as reported in the filing.

What is Douglas Dynamics' primary business?

Douglas Dynamics, Inc. is involved in the construction machinery and equipment industry, specifically manufacturing snowplows and other related equipment.

Filing Stats: 1,089 words · 4 min read · ~4 pages · Grade level 9.7 · Accepted 2024-09-12 16:00:56

Key Financial Figures

Filing Documents

01

Item 1.01. Entry into a Material Definitive Agreement. On September 10, 2024, Douglas Dynamics, L.L.C. ("Douglas Dynamics"), Henderson Products, Inc. and Trynex International LLC, subsidiaries of Douglas Dynamics, Inc. (the "Company"), as sellers, entered into an Agreement of Purchase and Sale (the "Purchase Agreement") with AGNL Blizzard, L.L.C., an affiliate of TPG Inc. (the "Purchaser"), to sell and leaseback seven properties (the "Properties") as described in the Purchase Agreement (the "Sale-Leaseback Transaction"). The Properties are comprised of three facilities located in Milwaukee, Wisconsin and four additional facilities located in each of Huntley, Illinois; Manchester, Iowa; Rockland, Maine; and Madison Heights, Michigan, totaling approximately 780,000 square feet of manufacturing and upfitting space. Through its subsidiaries, the Company received gross proceeds of $62.4 million from the sale of the Properties. Net of expenses and taxes, the Company is expected to receive net proceeds of approximately $50.0 million. In connection with the closing of the transactions contemplated by the Purchase Agreement, Douglas Dynamics entered into a lease agreement (the "Lease Agreement") with the Purchaser pursuant to which Douglas Dynamics will lease the Properties from the Purchaser. The Lease Agreement has an initial term of 15 years and will renew for additional ten-year terms thereafter, unless Douglas Dynamics notifies the Purchaser of its intent not to renew the Lease Agreement. The aggregate first-year annual rent amount for the Properties is $4.75 million, subject to a 3% increase effective as of each annual anniversary of the commencement date during the initial term and any renewal term. The Company has guaranteed Douglas Dynamics' obligations under the Lease Agreement. The Company obtained a consent to the Sale-Leaseback Transaction from the lenders under its Credit Agreement, dated as of June 9, 2021, by and among the Company, the other borrowers a

01

Item 2.01. Completion of Acquisition or Disposition of Assets. The information in Item 1.01 of this Current Report on Form 8-K regarding the Sale Leaseback-Transaction is incorporated by reference into this Item 2.01.

03

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information in Item 1.01 of this Current Report on Form 8-K regarding the Sale Leaseback-Transaction is incorporated by reference into this Item 2.03.

01

Item 7.01. Regulation FD Disclosure. The Company issued a press release on September 11, 2024 announcing the completion of the Sale-Leaseback Transaction, which is attached hereto as Exhibit 99.1. The information furnished in this Item 7.01, including Exhibit 99.1, is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section. This information will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (a) Not applicable. (b) Not applicable. (c) Not applicable (d) Exhibits. The following exhibits are being filed or furnished (as applicable) herewith: (10.1) Agreement of Purchase and Sale, dated September 10, 2024, among Douglas Dynamics, L.L.C., Henderson Products, Inc., Trynex International LLC and AGNL Blizzard, L.L.C. (10.2) Lease Agreement, dated September 10, 2024, between Douglas Dynamics, L.L.C. and AGNL Blizzard, L.L.C. (99.1) Press release dated September 11, 2024. (104.1) Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DOUGLAS DYNAMICS, INC. Date: September 12, 2024 By: /s/ Sarah Lauber Sarah Lauber Sarah Lauber Executive Vice President, Chief Financial Officer and Secretary

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