Alta Equipment Group Inc. in Livonia today announced it has entered into a definitive agreement to acquire Yale Industrial Trucks Inc. in Ontario, a privately held Yale lift truck dealer with five locations in southeastern Canada.
Alta owns and operates one of the largest integrated equipment dealership platforms in the U.S. Through its branch network, the company sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, cranes, earthmoving equipment, and other material handling and construction equipment.
Yale provides sales, service, and rental of material handling equipment throughout its territory, which encompasses Canada’s two largest population centers — Toronto and Montreal. The company has been a dealer since 1972, has more than 140 employees, 75 of whom are service technicians.
“The Yale acquisition is consistent with our growth strategy, which includes expanding into new markets which offer substantial opportunities to increase the scale of our business,” says Ryan Greenawalt, CEO of Alta. “This acquisition extends our operations into an international market for the first time and bridges our existing U.S. territories.
“It will benefit our material handling business as Quebec and Ontario represent approximately 80 percent of the market opportunity in Canada, and the greater Toronto area is one of the top five industrial distribution markets in North America. Culturally, they have a rich 50-year history of providing outstanding service to customers in the Canadian market which fits with our focus.”
Yale generated approximately $46.6 million in revenue and adjusted EBITDA of $9.4 million in the trailing 12 months through May 2022. The implied enterprise value of the acquisition is estimated to be approximately $33.5 million, subject to post-closing purchase price adjustments.
In connection with the Yale acquisition, Alta will be amending its ABL and Floorplan First Lien Credit Agreements. The amendment will, (i) exercise $80 million of the $150 million accordion function currently included in Alta’s asset-based revolving line of credit increasing borrowing capacity from $350 million to $430 million, which will include a $35 million Canadian-denominated sublimit facility; and (ii) increase the borrowing capacity of its revolving floor plan facility by $10 million from $50 million to $60 million.
Alta expects to close both the acquisition of Yale and the amendments to its credit agreements in the third quarter of 2022.
Alta has operated as an equipment dealership for 38 years and has developed a branch network that includes more than 60 total locations across Michigan, Illinois, Indiana, New England, New York, Virginia, Florida, and Ohio.
Alta offers its customers a one-stop-shop for most of their equipment needs by providing sales, parts, service, and rental functions under one roof.
More information can be found at www.altg.com.
In 2021, Alta Equipment’s 2020 SPAC IPO was named the Deal of the Year Over $50 million by the Association for Corporate Growth Detroit Chapter. The award was covered exclusively in DBusiness, and can be found here.
