BLOOMINGTON, Minn., October 07, 2025 — The Toro Company (NYSE: TTC) today announced that it has entered into a definitive agreement to acquire publicly held Tornado Infrastructure Equipment Ltd. (TSX-V: TGH), a leading manufacturer in the vacuum truck industry. The transaction is subject to certain antitrust and other regulatory approvals, approval by Tornado’s security holders, and other customary closing conditions, and is currently anticipated to close during The Toro Company’s fiscal 2026 first quarter.
Based in Calgary, Alberta, Tornado Infrastructure Equipment is a leading manufacturer of vacuum trucks and industrial equipment solutions for the underground construction, power transmission and energy markets. With a combination of power, precision and payload capacity, Tornado products are designed to safely excavate in urban areas and around critical infrastructure using a combination of high-pressure water or air, and a powerful vacuum system to minimize the risk of utility damage. During the trailing 12 months ended June 30, 2025, Tornado Infrastructure Equipment generated net sales of approximately $149 million (CAD).
In 2022, The Toro Company’s Ditch Witch Division entered into a strategic supply agreement with Tornado Infrastructure Equipment to co-develop an exclusive line of Ditch Witch-branded hydrovac trucks to expand its product offering and capitalize on accelerated growth in vacuum excavation.
“We continue to strengthen our business and product portfolio by divesting non-core assets and shifting resources toward markets with strong growth drivers like infrastructure,” said Richard Olson, chairman and chief executive officer of The Toro Company. “This acquisition builds on the momentum in our Professional segment, which represented nearly 80 percent of our fiscal 2024 new sales, and expands our underground construction product lineup while maintaining our disciplined approach to capital allocation.”
“Tornado Infrastructure Equipment is well recognized in the industry for its market-leading innovation and commitment to meeting the critical needs of customers in the greater infrastructure space,” said Peter Moeller, group vice president, Underground and Specialty Construction at The Toro Company. “This acquisition will help expand both our geographical footprint and product range to better serve customers facing complex projects in energy, power transmission, and water infrastructure. Having partnered with the Tornado team since 2022, we have a great history and respect for the Tornado team, and we look forward to working together to further our leadership position within construction.”
“Joining The Toro Company marks an exciting new chapter for Tornado,” said Brett Newton, president and chief executive officer of Tornado Infrastructure Equipment. “Toro’s culture and values closely align with ours, and together we will deliver innovative solutions and exceptional service to customers across the above-ground and underground infrastructure industry worldwide. This partnership enhances our ability to grow, support our employees, and meet the evolving needs of our customers for many years to come.”
The Toro Company will purchase all of the outstanding shares of Tornado Infrastructure Equipment for $1.92 per share (CAD), or a fully diluted equity value of $279 million (CAD), and intends to finance the acquisition with debt from existing credit facilities and additional financial arrangements. The all-cash purchase price is a 4 percent premium on Tornado Infrastructure Equipment’s latest closing share price. The Toro Company expects annual run-rate cost synergies of $3 million (USD) over three years that the company intends to achieve through opportunities in purchasing and manufacturing efficiencies. The Toro Company expects the transaction to be marginally accretive to earnings in the first year, excluding purchase price accounting and transaction-related adjustments.
By financing the transaction with debt, The Toro Company intends to preserve flexibility and capacity to continue to repurchase its shares under its stock repurchase program in line with its disciplined capital deployment strategy, reinforcing its commitment to creating long-term shareholder value. The Toro Company expects to provide guidance regarding the anticipated contribution of the acquisition to its fiscal year 2026 financial results at the time of its fourth quarter earnings call.