Valmont® Industries, Inc. (NYSE: VMI), a global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, today announced it has entered into a definitive agreement to acquire HR Products, a leading wholesale supplier of irrigation parts in Australia, expanding the Company’s geographic footprint and growing its parts presence in a key agriculture market.
“Aftermarket parts and services are a critical component of our global agriculture growth strategy, as it allows us to better serve our customers through extended offerings and expands our total addressable market,” said Joshua Dixon, President of Global Irrigation. “Due to the long life cycle of irrigation equipment, there is a substantial market to replace wearable parts. This acquisition positions us very well to meet this demand, leveraging our existing Valley® dealer network for distribution and service, and large installed machine base in the region to grow recurring, high-value revenue streams and help lessen the cyclicality in our agriculture business.”
HR Products provides a broad range of irrigation products to serve the agriculture and landscaping industries. The company was established in Perth, Western Australia in 1979, and has grown to nearly 100 employees and six warehouse facilities, with an extensive dealer network across the country that further strengthens Valmont’s market leadership.
Dixon continued, “Australia is a well-developed agriculture market and the region is focused on converting from flood irrigation as it has experienced persistent water supply challenges. HR Products has a proven and successful distribution model with strong customer relationships and robust operations across the geographically-diverse country. We are excited to welcome the HR Products team to Valmont and look forward to integrating the business and providing further value to Australian agriculture customers.”
The transaction will be funded with cash on hand and is expected to be immediately accretive to earnings, with Year 1 revenue of approximately US $45 million. The transaction is expected to close in the third quarter of 2023 and is subject to customary closing conditions. No further financial details were disclosed.
About Valmont Industries, Inc.
For over 75 years, Valmont has been a global leader in creating vital infrastructure and advancing agricultural productivity. Today, we remain committed to doing more with less by innovating through technology. Learn more about how we’re Conserving Resources. Improving Life.® at valmont.com.
Concerning Forward-Looking Statements
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management’s perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, the continuing and developing effects of the pandemic including the effects of the outbreak on the general economy and the specific economic effects on the Company’s business and that of its customers and suppliers, risk factors described from time to time in Valmont’s reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.
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