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:
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
