Milwaukee-based
Douglas Dynamics, a manufacturer of work truck attachments and equipment, including snow plows, has completed a multi-building sale leaseback deal that will net the company $50 million, according to a filing with the Securities and Exchange Commission (SEC).
The transaction includes approximately 780,000 square feet of manufacturing and upfitting space spread across seven facilities in Wisconsin, Illinois, Iowa, Maine and Michigan. The three Wisconsin facilities are located at 7777 N. 73rd St., Milwaukee; 7676 N. 76th St., Milwaukee and 7611 N. 73rd St., Milwaukee, all of which are located on the city's far northwest side.
The seven properties have a total value of $64.2 million. The sale will net the company $50 million after taxes and other expenses, according to the filing.
The company intends to use the net proceeds from the transaction to pay down its term loan debt and for other corporate purposes, the filing says.
Under the agreement, the initial lease for the assets is 15 years, with two 10-year options to renew. The aggregate first-year annual rent amount for the properties is $4.75 million.
"The facilities serve as critical elements of the company’s operations, and the company expects that they will continue to operate for many years to come, ensuring continuity and supporting long-term growth plans," the filing says.
“This transaction highlights our commitment to enhance our financial flexibility while maintaining operational continuity,” said
Sarah Lauber, Douglas Dynamics’ executive vice president and chief financial officer, in a press release. “These long-term lease agreements also reinforce our commitment to the communities in which we have operated for decades."
The buyer of the properties was an affiliate of
TPG Inc., which is a publicly-traded real estate investing platform.
“We are pleased to support Douglas Dynamics as it seeks to strengthen and build upon its longstanding position and operations," said Gordon Whiting, managing director and co-head of TPG Angelo Gordon Net Lease Real Estate. "Our team is proud to work with businesses like Douglas Dynamics, who provide critical services and high-quality products across the U.S. and Canada. We look forward to many years of successful partnership.”
