Alamo Group to Acquire Santa Izabel in Brazil
SEGUIN, Texas, May 2, 2017 — Alamo Group Inc. (NYSE: ALG) announced that it has entered into an agreement to acquire 100% of the outstanding capital shares of Santa Izabel Agro Industria, LTDA (“Santa Izabel”), a privately held company owned by Soufer Industria Ltda. Santa Izabel, located in Sao Joao da Boa Vista, SP, Brazil, designs, manufactures and markets a variety of agricultural implements and trailers sold throughout Brazil. Santa Izabel has been serving this market for over 60 years.
Santa Izabel’s sales in 2016 were approximately US $12.6 million and the purchase is expected to close in the second quarter of 2017.
Ron Robinson, Alamo Group’s President and Chief Executive Officer commented, “We are pleased to have Santa Izabel as part of the Alamo Group. They are firmly established in the Brazilian market and have a modern, well equipped manufacturing facility. They are also near our existing Herder operation in Brazil, which we acquired in 2015. This acquisition enhances our platform for growth by increasing both our product portfolio and capabilities in one of the world’s largest agricultural markets. And, we feel the timing is good as the agricultural market in Brazil starts to rebound from the declines of the last several years.”
Source: Alamo Group Inc.