Alta Equipment Group Inc. in Livonia today announced it has entered into a definitive agreement to acquire Ecoverse Industries, a full line distributor of environmental processing equipment headquartered in Avon, Ohio, with 15 sub dealers throughout North America.
The purchase price includes $42.5 million in cash, $2.5 million of Alta common stock, and a $6.0 million seller note at close. In addition, the purchase price includes contingent consideration in the form of an earn-out whereby sellers can earn an additional $4.0 million of Alta common stock and $12.0 million of cash over a five-year period subject to future EBITA growth.
“The acquisition of Ecoverse is exciting for our business as it represents our first investment into large-scale equipment distribution, giving us the master dealer rights to distribute best-in-class environmental equipment to dealers and customers throughout North America,” says Ryan Greenawalt, CEO of Alta.
The deal grants Alta exclusive distribution rights to North America for European equipment OEMs, including Doppstadt, Backus, Backers, and Tiger Depackaging products. It also increases the size of the equipment field population in North America and will provide for future parts and service growth opportunities.
Ecoverse generated approximately $64.3 million in revenue, $10.0 million in net income, an adjusted EBITDA of $10.1 million, and $9.7 million of adjusted pre-tax net income for the trailing twelve-month period through July 2022.
Ecoverse’s brand name, employees, and management team will remain in place post-close. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2022.
Including Ecoverse, since Alta’s initial public offering in 2020, it has completed 13 acquisitions which have contributed $440.3 million in revenue, and $52.5 million in adjusted EBITDA.
More information on Ecoverse, its products and applications can be found here.
To learn more about Alta Equipment and how they were honored with the 2021 ACG M&A All-Star Award for Deal of the Year Over $50 million, visit here.
