Alamo Group Acquires Petersen Industries for $166.5 Million to Expand Product Portfolio

Alamo Group Expands Portfolio with Petersen Industries Acquisition

Alamo Group Inc., a leading global manufacturer of industrial and vegetation management equipment, takes a significant step forward by announcing its definitive agreement to acquire Petersen Industries, Inc. for $166.5 million. This strategic move, which is set to close in the first quarter of 2026 pending regulatory approval, marks a pivotal moment in Alamo Group's mission to bolster its market presence. The acquisition is financed through a combination of cash reserves and the company’s credit facility, with an adjusted purchase price of approximately $150 million when accounting for anticipated tax benefits. The deal values Petersen at roughly 7.9 times its earnings before interest, taxes, depreciation, and amortization (EBITDA), highlighting the financial viability of this transaction.

Petersen Industries, based in Lake Wales, Florida, specializes in truck-mounted grapple loader equipment, primarily catering to governmental clients involved in bulky waste collection. With over 65 years of experience, Petersen has carved out a niche in enhancing waste handling efficiency and safety. The company generated about $75 million in revenue in 2024 and has a strong reputation for innovation in its field. Alamo Group’s CEO, Robert Hureau, expresses enthusiasm about the integration of Petersen into their Industrial Equipment Division, underscoring the strategic alignment of the two companies. This acquisition not only enhances Alamo’s product offerings but also aligns with its goal of acquiring profitable businesses that contribute innovative solutions in stable markets.

The optimistic outlook for the acquisition is echoed by Petersen's CEO, Casey Hardee, who notes the company’s growth trajectory and innovative strides since joining the more extensive Alamo Group portfolio. This acquisition is expected to provide significant synergies and be accretive to Alamo Group's earnings, further solidifying its competitive position in the industrial equipment sector. With this strategic move, Alamo Group continues to reinforce its commitment to expanding its market footprint and delivering enhanced solutions to its customers.

In addition to the acquisition news, Alamo Group remains focused on its long-term strategy of acquiring companies that exhibit potential for growth and innovation. This trend reflects a broader industry shift toward consolidation, where established firms look to enhance their product lines and market reach through strategic acquisitions. As Alamo Group integrates Petersen Industries into its operations, the company sets the stage for continued growth and innovation in the industrial equipment arena.