- Expands product portfolio with new OEMs, including an exclusive distributorship with McCloskey
- Diversifies end markets with entrance into Ontario and Quebec’s aggregate and mining industries
- Ault generated approximately $50.3 million in revenue, $4.5 million in net income, and $7.5 million in adjusted EBITDA for the trailing twelve months through June 30, 2023 and is expected to be immediately accretive to the Company’s free cash flow conversion, profitability, and earnings per share ratios
“The acquisition of Ault represents Alta’s first investment in Canada for our growing construction segment. We are extremely excited to partner with the Ault team as they have built a high-performing equipment dealership in the aggregate and mining space, a growing end market in their region and for Alta,” said Ryan Greenawalt, Chief Executive Officer of Alta. “In addition to entering the major construction markets of Toronto and Montreal, we also eagerly embrace a new relationship with McCloskey, a market leading OEM in the crushing and screening product category. We extend a warm welcome to the Ault team as they become part of the Alta family.”
Strategic and Financial Highlights
- The acquisition expands Alta’s Construction Equipment segment into Canada’s two largest markets.
- As part of the acquisition, Alta assumes Ault’s exclusive dealer agreement with McCloskey, a best-in-class product in the crushing and screening category.
- Given Ault’s leading market position and strong brand relationships, the Company expects the acquisition to be accretive to the Company’s EBITDA to cash flow conversion and earnings per share ratios.
Additional Transaction Details
- Total purchase price of $36.0 million, consisting of $23.2 million cash at close, a $2.2 million seller note, and $10.6 million worth of Alta’s common stock, which will be issued at $13 per share, equating to 818,473 shares vesting annually over a five-year period. The purchase price is subject to post-closing working capital adjustments.
- Ault’s brand name, employees, and management team will remain in place post-close.
- Including Ault, since the Company’s initial public offering in 2020, Alta has completed 16 acquisitions which have contributed $537 million in revenue, and $66 million in Adjusted EBITDA.