TORONTO, Feb. 3, 2025
/CNW/ - Toromont Industries Ltd. (TSX: TIH) announced that it has
acquired a 60% ownership of AVL Manufacturing Inc. ("AVL"), a
leader in the design and fabrication of power generation and
storage enclosures. AVL operates in Hamilton, Ontario, and currently serves the
data centre market across eastern North
America. The purchase price for the transaction will be paid
in a combination of cash (using available funds) and shares of
Toromont. The transaction is subject to customary
post-closing adjustments. Additionally, Toromont has committed to
purchasing the remaining 40% ownership at agreed upon dates through
to 2031 based upon underlying business performance. The
acquisition, while accretive, is not expected to have an overall
material impact on Toromont's combined revenue, earnings or balance
sheet in the near-term.
"Enclosures for standby and prime power are part of an important
and growing market segment in North
America, which includes supporting leading technology
companies data centre needs," said Mike
McMillan, President and CEO of Toromont. "This acquisition
adds complementary capabilities to our product and service
offerings, secures supply for our Toromont Power Systems business,
and provides the opportunity to expand our market to other
regions. We are pleased to welcome the AVL team to the
Toromont family and we look forward to building our business
together."
"AVL Manufacturing will continue to operate as it does today,
under the leadership of Vince
DiCristofaro, President of AVL," added McMillan. "This
will enable a smooth transition and support business continuity
going forward for our customers and new team members."
"On behalf of the entire team at AVL, we look forward to
partnering with Toromont as we leverage our combined skills and
knowledge to address a rapidly growing market," said Vince DiCristofaro. "We expect to continue
serving our customers with best-in-class design and manufacturing
capabilities to serve their needs now and in the future."
Please note that Mike McMillan
and John Doolittle will host a brief
analyst call at 4 pm today to provide
more information on the acquisition.
Analysts, members of the media and other interested parties are
invited to participate in a teleconference and audio webcast on
Monday, February 3, 2025 beginning at
4:00 p.m. (Eastern) to discuss the
AVL acquisition. The conference will begin with a brief
address by Michael S. McMillan,
President and Chief Executive Officer, and John M. Doolittle, Executive Vice President and
Chief Financial Officer of Toromont Industries Ltd., followed by a
question and answer period for investment analysts.
Monday, February 3, 2025 at
4:00 p.m. (Eastern) – How to
join:
- Live audio webcast at www.toromont.com
- Join teleconference without Operator Assistance:
https://emportal.ink/42BjhyA
You will receive an instant automated call back.
- Join teleconference with Operator Assistance: Dial: 1 888
699 1199 or 1-416-945-7677 (Toronto area) or and ask to be placed into the
Toromont call (no participant code is required).
Digital Replay until Monday, February
10, 2025
Call 1-888-660-6345 or (+1) 289-819-1450 (Toronto area) and enter passcode: 06938
#
About Toromont
Toromont Industries Ltd. operates through two business segments:
The Equipment Group and CIMCO. The Equipment Group includes
one of the larger Caterpillar dealerships by revenue and geographic
territory - spanning the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New
Brunswick, Prince Edward
Island, Québec, Ontario and
Manitoba in addition to most of
the territory of Nunavut. In addition, the Equipment Group
includes industry leading rental operations, and a complementary
material handling business. CIMCO is a market leader in the design,
engineering, fabrication and installation of industrial and
recreational refrigeration systems. Both segments offer
comprehensive product support capabilities. This press release and
more information about Toromont Industries Ltd. can be found at
www.toromont.com.
FORWARD-LOOKING INFORMATION
Information in this news release that is not a historical fact
is "forward-looking information". Words such as "plans", "intends",
"outlook", "expects", "anticipates", "estimates", "believes",
"likely", "should", "could", "would", "will", "may" and similar
expressions are intended to identify statements containing
forward-looking information. Forward-looking information in this
release reflects current estimates, beliefs, and assumptions, which
are based on Toromont's perception of historical trends, current
conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances.
Toromont's estimates, beliefs and assumptions are inherently
subject to significant business, economic, competitive and other
uncertainties and contingencies regarding future events and as
such, are subject to change. Toromont can give no assurance that
such estimates, beliefs and assumptions will prove to be correct.
Numerous risks and uncertainties could cause the actual results to
differ materially from the estimates, beliefs and assumptions
expressed or implied in the forward-looking statements, including,
but not limited to failure to achieve expected outcomes from the
acquisition of Tri-City Equipment Rentals. Any of the
above-mentioned risks and uncertainties could cause or contribute
to actual results that are materially different from those
expressed or implied in the forward-looking information and
statements included in this release. For a further description of
certain risks and uncertainties and other factors that could cause
or contribute to actual results that are materially different, see
the risks and uncertainties set out under the heading "Risk
Factors" of the most recent management discussion and analysis
accompanying our 2023 financial statements. Other factors, risks
and uncertainties not presently known to Toromont or that Toromont
currently believes are not material could also cause actual results
or events to differ materially from those expressed or implied by
statements containing forward-looking information. Readers are
cautioned not to place undue reliance on statements containing
forward-looking information, which reflect Toromont's expectations
only as of the date of this release, and not to use such
information for anything other than their intended purpose.
Toromont disclaims any obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
For more information contact:
John Doolittle
Executive Vice President and Chief Financial Officer
Toromont Industries Ltd.
T: (416) 514-4790
SOURCE Toromont Industries Ltd.
