Alamo Group to buy Bush Hog
Seguin, Texas-based agriculture and road maintenance equipment maker Alamo has signed an agreement to acquire the majority assets of Selma, Ala.-based Bush Hog, a manufacturer of rotary cutters and other agricultural equipment.
Bush Hog’s owner, CC Industries, will receive 1.7 million shares of Alamo Group stock, representing 14.5% of the company’s common stock, which closed at $13.87 on Friday, an estimated value of $23.6 million. The purchase is expected to close within 90 days. The purchase includes substantially all of the ongoing business of Bush Hog, including the Bush Hog brand name and all related product names and trademarks, according to the company.
“While Bush Hog is being impacted by the current economic weakness seen across the agricultural sector, we believe the combined organization will be a strong force in the market both today and tomorrow,” said Ron Robinson, Alamo Group’s president and CEO. “We are dedicated to not only maintaining Bush Hog’s presence in the market, but to providing it with the resources to expand and grow when market conditions improve.”
Bush Hog had fiscal 2008 revenue of $160 million. Their product line includes rotary cutters, finishing mowers, zero turn mowers, front-end loaders, backhoes, landscape equipment and a variety of other implements.
Alamo Group specializes in the design, manufacture, distribution and service of high quality equipment for right-of-way maintenance and agriculture. The company has more than 2,215 employees and operates 17 plants in North America and Europe as of June 30.
BMHC to be delisted on OTC Bulletin Board
Building Materials Holding Corp. (BMHC), one of the industry’s largest LBM chains, has been notified by Financial Industry Regulatory Authority that its common shares will be removed from quotation on the OTC Bulletin Board (OTCBB), effective Sept. 21, 2009.
BMHC received the notification because it has not filed a quarterly report for the period ended June 30, 2009, according to a June 2 filing with the Securities and Exchange Commission.
The Boise, Idaho-based company, No. 8 on the Home Channel News Top 350 Pro Dealer Scorecard, moved its stock listing to the OTCBB on Oct. 30, 2008, following the company’s removal from the New York Stock Exchange.
BMHC said it has no plans to appeal the delisting. The company, which filed for Chapter 11 bankruptcy protection on June 16, 2009, said it expects to complete its restructuring in the fourth quarter of 2009.
Around the Web: Dieruf Hardware explains success
The small independent explained how his company has managed to increase net profit every year for 63 consecutive years. His advice: “First, know the difference between management and marketing,” he said. “Have a five-year plan, don’t just plan for tomorrow. And the third thing is to have fun.”