Toro’s Strategic Acquisition of Tornado Infrastructure Equipment
Following the divestiture of its trencher and auger boring divisions in August, Toro is set to acquire Tornado Infrastructure Equipment, a Canadian hydrovac truck manufacturer, as it intensifies its emphasis on underground construction products.
Development Partnership with Tornado
Since 2022, Toro has been collaborating with Tornado to jointly develop Ditch Witch-branded hydrovac trucks. These vehicles have gained traction as a safer alternative for excavation in urban settings and around buried utilities, utilizing high-pressure water or air and suction to dig.
Financial Details of the Acquisition
Tornado, established in 1984, generated around $106 million (USD) in net sales for the year ending June 30, 2025. Toro plans to acquire all outstanding shares of Tornado stock at a price of $1.36 (USD) per share, reflecting a 4% premium. The total equity value is estimated to be about $198 million (USD), with financing sourced from existing credit facilities and other financial arrangements, according to Toro.
Expected Benefits of the Acquisition
Peter Moeller, Toro’s group vice president for underground and specialty construction, stated, “This acquisition will help expand both our geographical footprint and product range, enhancing our ability to serve customers engaged in complex projects in energy, power transmission, and water infrastructure.”
Tornado’s Leadership Perspective
Brett Newton, president and CEO of Tornado, expressed that his company’s values are closely aligned with those of Toro. He believes that this acquisition will facilitate business growth and innovation in solutions for both above-ground and underground infrastructure sectors. He added, “This partnership will enhance our ability to grow, support our employees, and meet the evolving needs of our customers for years to come.”
Regulatory and Shareholder Approvals
The acquisition awaits approval from Tornado’s shareholders and necessary regulatory bodies. It is anticipated to finalize in the first quarter of Toro’s fiscal 2026.
Recent Changes in Toro’s Portfolio
This move follows Toro’s recent sale of its Trencor brand along with its auger boring segment under American Augers in August.
