#United States #Alamo Group #Seguin #Industrial Equipment #Petersen Industries

Alamo Group Expands Its Portfolio with Petersen Industries Acquisition

On December 10, 2025, Alamo Group Inc. (NYSE: ALG) announced its definitive agreement to acquire Petersen Industries, Inc. for a notable purchase price of $166.5 million. Alamo Group, a prominent global manufacturer known for high-quality industrial and vegetation management equipment, aims to enhance its offerings by integrating Petersen’s innovative solutions.

Financial Overview

The acquisition will be financed through a mix of Alamo’s existing cash reserves and funds available from its credit facility. Notably, after considering expected tax benefits, the effective purchase price is estimated to be around $150 million. This acquisition reflects a price-to-EBITDA ratio of approximately 7.9, not accounting for potential synergies expected from the merger.

Petersen Industries, a leader in developing truck-mounted grapple loader equipment, has established itself in the bulky waste management sector for over 65 years. Their products significantly improve the efficiency and safety of waste collection processes undertaken by municipalities and private entities alike.

Strategic Fit and Growth Potential

Robert Hureau, the President and CEO of Alamo Group, expressed enthusiasm about the acquisition, noting, "Joining Petersen with the Alamo Group family aligns perfectly with our growth strategy. We actively seek companies that are profitable, innovative, and leaders in stable markets. We foresee that Petersen’s products will seamlessly integrate into our offerings. We also anticipate substantial future cost efficiencies and revenue enhancements as we merge our supply chains."

Casey Hardee, the CEO and owner of Petersen, highlighted the company’s journey since 2012, when he and Sam Petersen acquired it from the founding family.

"Our team has made innovative strides, driving significant growth and success in our industry. I am confident that under Alamo’s ownership, Petersen will continue to thrive, producing exceptional products and achieving further success."

Market Impact and Future Projections

Alamo Group expects the transaction to be finalized in the first quarter of 2026, pending regulatory approvals and standard closing requirements. This acquisition is projected to be beneficial for Alamo's growth trajectory and profitability. Moreover, the integration is likely to create a stable stream of recurring revenue through Petersen’s aftermarket parts and services offerings.

Petersen Industries generated around $75 million in sales during 2024, positioning it as a significant addition to Alamo’s extensive product lineup of industrial and vegetation management equipment. This includes products essential for public and private sector infrastructure maintenance, such as vacuum trucks, street sweepers, and recycling equipment.

As one of the industry's leading innovators, Petersen has changed how waste is managed on a municipal level, taking on large and hard-to-move debris in a more efficient manner. Companies in this sector are increasingly focused on improving waste management systems, and Petersen has been at the forefront of these developments.

About Alamo Group

Founded in 1969, Alamo Group operates 27 plants across North America, Europe, Australia, and Brazil. The firm specializes in the manufacturing of essential equipment for infrastructure maintenance and responsible land management.

In summary, the acquisition of Petersen Industries marks a strategic step for Alamo Group as it broadens its market reach and enhances its product offerings to meet the growing demand for efficient waste management solutions. The impending integration sets the stage for Alamo to bolster its competitive edge in the industrial equipment landscape, promising to unlock new avenues for growth and profitability as the merger progresses.