“The acquisition of Ault represents Alta’s first investment in Canada for our growing construction segment. We are extremely excited to partner with the Ault team as they have built a high-performing equipment dealership in the aggregate and mining space, a growing end market in their region and for Alta,” said Ryan Greenawalt, CEO, Alta Equipment Group. “In addition to entering the major construction markets of Toronto and Montreal, we also eagerly embrace a new relationship with McCloskey, a market-leading OEM [original equipment manufacturer] in the crushing and screening product category. We extend a warm welcome to the Ault team as they become part of the Alta family.”
Alta Equipment Group said that given Ault Industries’ leading market position and strong brand relationships, it expects the acquisition to be accretive to its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) to cash flow conversion and earnings per share ratios.
The total purchase price of the transaction was $36.0 million, consisting of $23.2 million cash at close, a $2.2 million seller note, and $10.6 million worth of Alta’s common stock, which will be issued at $13 per share, equating to 818,473 shares vesting annually over a five-year period. The purchase price is subject to post-closing working capital adjustments.
Ault Industries’ brand name, employees and management team will remain in place post-close, the companies said.
Including Ault Industries, since Alta Equipment Group’s initial public offering in 2020, it has completed 16 acquisitions which have contributed $537 million in revenue, and $66 million in Adjusted EBITDA.