Morbark sold in $352M deal to Alamo Group

Stellex Capital Management entered into an agreement to sell Morbark, the manufacturer of equipment and aftermarket parts for the forestry, recycling, tree care, sawmill, land clearing and biomass markets, to Alamo Group for $352 million.

The sale includes all assets and operations of Morbark and its affiliate brands.

Founded in 1957 and based in Winn, Michigan, Morbark and its affiliate brands – Rayco, Denis Cimaf and Boxer Equipment – produce a line of brush chippers, stump cutters, mini skid-steers, forestry mulchers, aerial trimmers, whole tree and biomass chippers, flails, horizontal and tub grinders, sawmill equipment, material handling systems, and mulcher head attachments for excavators, backhoes and skid-steers.

“Together with Stellex, Morbark has achieved our strategic vision by greatly enhancing operations and implementing lean initiatives and best-in-class manufacturing practices that have resulted in new and improved redesigns, significant reductions in lead times and improved delivery performance,” says Dave Herr, CEO of Morbark. “We are grateful for our time with Stellex and look forward to the next chapter as part of Alamo, an ideal suitor given its operating philosophy that will allow us to maintain our brands, operations and successful momentum while further enhancing various operational synergies and accelerating international growth.”

The acquisition, which is expected to close in the fourth quarter this year, is subject to a number of conditions, including the receipt of regulatory approvals and other pre-closing requirements. Upon completion of the transaction, Morbark will become part of Alamo’s Industrial Division. Herr will continue in his role as Morbark CEO, and Morbark’s day-to-day operations will remain unchanged.

“This move provides numerous benefits for Morbark,” Herr says. “Employees, customers and dealers will notice no significant changes in their day-to-day work. Being part of a publicly traded company provides long-term stability so we can continue our investments in equipment and products to promote continued growth. All of our brands have an excellent reputation in the industry and will be maintained with no changes. We will have a significant opportunity to leverage Alamo’s international presence to expand our sales and sourcing capabilities.”