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Acquisitions | 9 Months Ended
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Sep. 30, 2025
Business Combination [Abstract] |
Acquisitions | ACQUISITIONS Acquisition of Waterblasting LLC On February 12, 2025, the Company completed the acquisition of substantially all the assets and operations of Waterblasting, LLC, owner of Hog Technologies, and Waterblasting Eurasia, s.r.o. (collectively, “Hog”). Hog is a leading U.S. manufacturer of truck-mounted road-marking, line-removal, and waterblasting equipment, serving infrastructure, municipal, and airport markets. The Company expects the acquisition of Hog will strengthen its position as an industry-leading, diversified industrial manufacturer of specialty vehicles by expanding its product offerings, market presence, and aftermarket platform. The assets and liabilities of Hog have been consolidated into the Company’s Condensed Consolidated Balance Sheet as of September 30, 2025, and the post-acquisition results of operations have been included in the Condensed Consolidated Statements of Operations, within the Environmental Solutions Group. The initial cash consideration paid by the Company to acquire Hog was approximately $82.1 million, inclusive of certain preliminary closing adjustments. In addition, there is a contingent earn-out payment of up to $15.0 million that is based on the achievement of certain financial targets during 2025 and an additional payment of $2.0 million that was held back from the initial amount paid at closing pending resolution of certain post-closing adjustments. Any additional closing adjustments are expected to be finalized before the end of 2025. The acquisition is being accounted for in accordance with ASC 805, Business Combinations. Accordingly, the total purchase price has been allocated on a preliminary basis to assets acquired and liabilities assumed in connection with the acquisition based on their estimated fair values as of the completion of the acquisition. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company’s judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results of operations. The Company’s purchase price allocation as of September 30, 2025 reflects various provisional estimates that were based on the information that was available as of the acquisition date and the filing date of this Form 10-Q. The Company believes that information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed; however, the determination of those fair values is not yet finalized. Thus, the preliminary measurements of fair value set forth in the table below are subject to change during the measurement period as valuations are finalized. The Company expects to finalize the valuation and complete the purchase price allocation as soon as practicable, but not more than one year from the acquisition date. The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the acquisition date:
(in millions) |
Purchase price, inclusive of preliminary closing adjustments (a) | $ | 84.1 |
Estimated fair value of additional consideration (b) | 11.5 |
Settlement of pre-existing contractual relationship (c) | 0.9 |
Total consideration | 96.5 |
Accounts receivable | 7.2 |
Inventories | 10.7 |
Prepaid expenses and other current assets | 1.0 |
Properties and equipment | 17.8 |
Customer relationships (d) | 16.5 |
Trade names (e) | 10.5 |
Other intangible assets | 3.5 |
Accounts payable | (3.8) |
Accrued liabilities | (1.3) |
Customer deposits | (5.4) |
Net assets acquired | 56.7
Goodwill (f) | $ | 39.8 |
(a) The initial purchase price, which is subject to certain post-closing adjustments, including working capital, was funded through existing cash on hand and borrowings under the Company’s credit agreement. The initial purchase price includes $2.0 million that was held back from the initial amount paid at closing pending resolution of certain post-closing adjustments. This hold back amount is included as a component of Other current liabilities on the Condensed Consolidated Balance Sheet as of September 30, 2025. The initial purchase price also includes an amount of $10.0 million, which was paid by the Company at closing and placed into an escrow account. Based on Hog’s financial results for the year ended December 31, 2025, some or all of the amount placed in escrow will either be released to the former owner of Hog, or to the Company. The Company has assigned a preliminary fair value to this contingent consideration of $10.0 million as of the acquisition date. (b) Represents the preliminary estimate of fair value assigned to the contingent earn-out payment as of the acquisition date, which has a maximum payout of $15.0 million, and is included in Other current liabilities on the Condensed Consolidated Balance Sheet as of September 30, 2025. See Note 13 – Fair Value Measurements for discussion of the methodology used to determine the fair value of the contingent earn-out payment. (c) Represents the non-cash settlement of accounts receivable due from Hog to the Company as of the acquisition date. Corresponding amount payable by Hog to the Company is not included in accounts payable assumed in the table above, and the amount was settled at fair value with no impact on the Condensed Consolidated Statement of Operations. (d) Represents the preliminary fair value assigned to customer relationships, which are considered to be definite-lived intangible assets, with a preliminary estimated useful life of approximately 11 years. (e) Represents the preliminary fair value assigned to trade names, which are considered to be indefinite-lived intangible assets. (f) Goodwill, which is primarily tax-deductible, has been allocated to the Environmental Solutions Group on the basis that the synergies identified will primarily benefit this segment. For the period between the closing date of February 12, 2025 and September 30, 2025, Hog generated approximately $46.3 million of net sales and $7.1 million of operating income. The acquisition was not, and would not have been, material to the Company’s net sales, results of operations, or total assets during any period presented. Accordingly, the Company’s consolidated results from operations do not differ materially from historical performance as a result of the acquisition, and therefore, unaudited pro-forma results are not presented. Acquisition of Standard Equipment On October 4, 2024, the Company completed the acquisition of substantially all the assets and operations of Standard Equipment Company (“Standard”). Standard is a leading distributor of specialty maintenance and infrastructure equipment for municipal and industrial markets in parts of Illinois and Indiana. The cash consideration paid by the Company to acquire Standard was approximately $39.6 million, inclusive of certain closing adjustments. In addition, there is a contingent earn-out payment of up to $4.8 million that is based on the achievement of certain financial targets over a specified performance period. During the third quarter of 2025, the Company finalized the Standard purchase price allocation and recognized certain measurement period adjustments, which did not have material impact on the carrying value of Goodwill previously recognized as of December 31, 2024. The measurement period adjustments did not have a material impact on the Company’s Consolidated Statements of Operations for the three and nine months ended September 30, 2025. The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date:
(in millions of dollars) |
Purchase price, inclusive of closing adjustments (a) | $ | 39.6 |
Estimated fair value of additional consideration (b) | 0.6 |
Total consideration | 40.2 |
Accounts receivable | 4.0 |
Inventories | 9.0 |
Prepaid expenses and other current assets | 0.1 |
Rental equipment | 11.3 |
Properties and equipment | 0.6 |
Operating lease right-of-use assets | 2.7 |
Customer relationships (c) | 4.4 |
Trade names (d) | 3.1 |
Other intangible assets | 0.3 |
Accounts payable | (0.7) |
Accrued liabilities | (0.6) |
Customer deposits | (0.9) |
Operating lease liabilities | (2.7) |
Net assets acquired | 30.6
Goodwill (e) | $ | 9.6 |
(a) The purchase price was funded through existing cash on hand. (b) Represents the estimated fair value of the contingent earn-out payment as of the acquisition date, which is included in Other long-term liabilities on the Consolidated Balance Sheets. See Note 13 – Fair Value Measurements for discussion of the methodology used to determine the fair value of the contingent earn-out payment. (c) Represents the fair value assigned to customer relationships, which are considered to be definite-lived intangible assets, with an estimated useful life of approximately 9 years. (d) Represents the fair value assigned to trade names, which are considered to be indefinite-lived intangible assets. (e) Goodwill, which is primarily tax-deductible, has been allocated to the Environmental Solutions Group on the basis that the synergies identified will primarily benefit this segment. Acquisition of Trackless In connection with the April 2023 acquisition of substantially all the assets and operations of Trackless Vehicles Limited and Trackless Vehicles Asset Corp, including the wholly-owned subsidiary Work Equipment Ltd. (collectively, “Trackless”), the Company paid initial cash consideration of approximately C$56.3 million (approximately $41.9 million as of the acquisition date). During the nine months ended September 30, 2025, the Company paid additional consideration of C$6.0 million (approximately $4.4 million) to settle the contingent consideration liability associated with the acquisition. The contingent consideration was based on the achievement of specified financial results over the two-year period following the closing of the acquisition. Of the $4.4 million of additional consideration paid, $0.1 million has been included as a component of Net cash provided by operating activities within the Condensed Consolidated Statement of Cash Flows, with the remaining $4.3 million, representing the fair value of the contingent consideration established in the Company’s purchase price allocation, being included as a component of Net cash used for financing activities. Execution of Definitive Agreement to Acquire New Way On September 24, 2025, the Company entered into an Equity Purchase Agreement (the “Purchase Agreement”) with McLaughlin Family Companies Inc., an Iowa corporation, and Scranton Manufacturing Company Inc., an Iowa corporation (“New Way”). Pursuant to, and subject to the terms and conditions of, the Purchase Agreement, the Company will acquire all of the outstanding equity interests of New Way. The Purchase Agreement provides for initial consideration of $396.0 million to acquire New Way. As part of the acquisition, the Company will also pay additional consideration of $30.0 million for New Way’s manufacturing facilities and associated real estate rights in Iowa and Mississippi. The initial purchase price assumes a cash-free, debt-free transaction, and is subject to certain post-closing adjustments. In addition, there is a contingent earn-out opportunity of up to $54.0 million, based on the achievement of certain specified financial targets over a two-year period. New Way is a leading U.S.-based designer and manufacturer of refuse collection vehicles. The Company expects the acquisition of New Way will strengthen its position as an industry-leading, diversified industrial manufacturer of specialty vehicles by expanding its product offerings, market presence, and aftermarket platform. The Company currently expects to complete the transaction during the fourth quarter of 2025, subject to regulatory approval and customary closing conditions.

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