Alta Equipment Group Inc., Livonia, Michigan, has announced an agreement to acquire Ecoverse Industries LTD, a full-line distributor of industry-leading environmental processing equipment headquartered in Avon, Ohio, with 15 dealer locations throughout North America.
“The acquisition of Ecoverse is exciting for our business as it represents our first investment into large-scale equipment distribution, giving us the master dealer rights to distribute best-in-class environmental equipment to dealers and customers throughout North America,” Alta CEO Ryan Greenawalt says. “Ecoverse has a long-standing track record in the environmental processing equipment sector as a distributor of high-end equipment which is used in biofuel, composting and various waste and recycling applications. The Ecoverse acquisition immediately positions Alta as an industry leader in a sector where demand for eco-friendly waste solutions and recycling continues to grow. We welcome Ecoverse to the Alta family.”
The deal includes distribution rights in North America for original equipment manufacturers Doppstadt, Backhus, Bakers and Tiger Depackaging, according to a news release from Alta.
The total purchase price, assuming EBITA remains stable, would be $59 million, including $52.5 million in cash and $6.5 million in common stock; however, the price could vary from $51 million to $67 million, depending on Ecoverse’s EBITA.
For the 12-month period ending in July 2022, Ecoverse generated $64.3 million in revenue, $10 million in net income, adjusted EBITDA of $10.1 million and $9.7 million of adjusted pre-tax net income, according to Alta.
Ecoverse’s brand name, employees, and management team will remain in place after the purchase is complete, Alta says.
Since Alta’s initial public offering in 2020, it has completed 13 acquisitions (including Ecoverse) which have contributed $440.3 million in revenue and $52.5 million in adjusted EBITDA.
Through its branch network, Alta Equipment sells, rents and provides parts and service support for several categories of specialized equipment, including lift trucks and aerial work platforms, cranes, earthmoving equipment and other material handling and construction equipment. Alta has operated as an equipment dealership for 38 years and has developed a branch network that includes more than 65 locations across Michigan, Illinois, Indiana, New England, New York, Virginia, Florida, Ohio, Ontario and Quebec.
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2022.