Racine-based Twin Disc Inc. plans to sell its distribution business covering the Pacific Northwest and Western Canada to Sun Prairie-based Palmer Johnson Power Systems.
The $7.5 million sale of Mill Log Equipment Co. and Mil Log Wilson Equipment Ltd. assets and distribution rights will add to the existing Twin Disc distribution Palmer Johnson has in the Midwest.
“Our customers will benefit from a cohesive sales and customer service experience from the Midwest to the West Coast,” said John Batten, president and chief executive officer of Twin Disc. “Both Palmer Johnson and Mill Log will gain resources and relationships through the acquisition.”
Twin Disc designs and manufactures marine and heavy-duty off-highway power transmission equipment. Mill Log has been a Twin Disc subsidiary for more than 20 years.
“Within our organization we will be able to reallocate resources to continue our focus on product development and engineering,” Batten said.
The deal is expected to close March 4.
Craig Parsons, president of Palmer Johnson, said the acquisition would make the company a dominant player in off-highway markets in the western U.S. and Canada along with a powerhouse in marine and oil and gas markets.