Milwaukee-based Douglas Dynamics Inc. has completed the acquisition of Henderson Products Inc. of Manchester, Iowa, for approximately $95 million in cash, subject to post-closing adjustments. The signing of the definitive purchase agreement for the acquisition was previously announced in late November.
Douglas Dynamics said the purchase of Henderson, a manufacturer of custom snow and ice control equipment solutions for heavy duty trucks, strengthens its market leadership position in snow and ice control across all truck segments and creates new opportunities for growth in attractive adjacent markets.
“The acquisition aligns perfectly with our core business and adds a layer of predictability and stability to our business, which is highlighted by Henderson’s excellent track record of 11 consecutive years of revenue growth, said James Janik, chairman, president and chief executive officer of Douglas Dynamics, when the company first announced plans of the acquisition.
“Henderson is the industry leader in the heavy duty truck segment of the snow and ice control market and has a different customer base and sales cycle as compared to our core business. Henderson works with the municipal budgeting and planning cycle, which provides a much higher degree of revenue visibility with purchase decisions that are generally pre-planned and less driven by near-term weather conditions.”
Henderson serves state departments of transportation, counties and municipalities. Products include snow plows, ice control equipment, dump bodies, muni-bodies and replacement parts. It generated $76 million in net sales in the year ending Sept. 30.
Henderson has a 170,000-square-foot manufacturing facility where most of its more than 350 employees are based. It also has five truck equipment up-fit facilities in New York, Iowa, Ohio, New Jersey and Illinois that handle assembly and delivery of the trucks.
Douglas Dynamics makes vehicle snow and ice attachments and equipment under the Blizzard, Fisher, Snowex and Western brands, turf care equipment under the Turfex brand, and industrial maintenance equipment under the Sweepex brand.