Alamo Group purchases Bush HogPublished 1:21am Saturday, September 5, 2009
SEGUIN, Texas — Alamo Group Inc. has signed an agreement to buy Bush Hog LLC in Selma.
Alamo Group, a publicly traded corporation, made the announcement Friday afternoon.
The agreement will allow Alamo to acquire the majority of assets and assume certain liabilities of Bush Hog.
Bush Hog will continue to manufacture in Selma.
The announcement puts to rest rumors of the last few months of Bush Hog permanently closing its doors or someone coming in to buy the manufacturer of rotary cutters and other agricultural implements and moving production away from Selma.
“This is an exciting development for Alamo,” said Ron Robinson, Alamo Group’s president and chief executive officer in a prepared statement. “Bush Hog is the leading manufacturer of agricultural mowing equipment in North America and has the most recognized name in the industry. This acquisition is very synergistic with our North American Agricultural Division and together we will be able to offer the market the broadest range of products in this sector of the industry.”
The purchase consideration is 1.7 million shares of Alamo Group Inc. common stock. After closing in 90 days, it would represent about 14.5 percent of Alamo’s outstanding common stock.
The purchase includes almost all of Bush Hog’s ongoing business, including the band name and all related product names and trademarks.
Duane Prentice, Bush Hog’s president since September 2008, will maintain his position with the new Bush Hog subsidiary of Alamo Group following the completion of the sale.
Prentice could not be reached for comment Friday. His office said he would be available Tuesday.
Bush Hog sells most of its products in North America through a series of independent dealers and distributors.
Robinson acknowledged the impact of the current economic situation on Bush Hog and other portions of the agricultural sector, but said the combined organization of Alamo Group and Bush Hog “would be a strong force in the market both today and tomorrow.
“We are dedicated to not only maintaining bush Hog’s presence in the market, but to providing it with the resources to expand and grown when market conditions improve,” he said.
Bill Crown, president and chief executive officer of CC Industries, which owns Bush Hog, echoed Robinson’s assessment of the purchase.
“We are proud to have been owners of Bush Hog and look forward to participating in the long-term success of Alamo Group,” he said.
Wayne Vardaman, executive director of the Selma & Dallas County Economic Development Authority, said the sale is something the EDA has worked with for months.
“We’re excited about it,” he said. “I think it is going to be great for the community.”
Vardaman and several county and city officials will meet with representatives of the Alamo Group next week.
“We’re still going to work with them and see if we can do anything to help them,” Vardaman said.