Alamo Group (ALG) Expands Industrial Equipment Portfolio With Petersen Acquisition

Alamo Group Inc. (NYSE:ALG) is included among the 13 Best January Dividend Stocks to Invest in.

On December 10, Alamo Group Inc. (NYSE:ALG) said it reached a definitive agreement to acquire Petersen Industries, Inc., a recognized maker of truck-mounted grapple loader equipment. The deal places a $166.5 million value on Petersen, subject to customary post-closing adjustments.

The acquisition will be financed using a combination of cash on hand and capacity under Alamo Group’s credit facility. After adjusting for the present value of expected tax benefits, the effective purchase price comes in at about $150 million. That works out to roughly 7.9x EBITDA, before factoring in any potential run-rate synergies.

Once the deal closes, Petersen will be folded into Alamo Group’s Industrial Equipment Division. The company expects the transaction to close in the first quarter of 2026, assuming regulatory approvals and standard closing conditions are met. Management sees the acquisition as a way to support long-term growth, improve margins, and add recurring revenue tied to Petersen’s aftermarket parts and service business. D.A. Davidson & Co. served as financial advisor, while Dykema Gossett PLLC acted as legal counsel to Alamo Group.

Petersen is known as a market leader in grapple truck loaders, with a customer base that leans heavily toward government agencies handling bulky waste collection. The company has been operating for more than 65 years and has built its name around product innovation and equipment designed for tough, real-world use.

Alamo Group Inc. (NYSE:ALG) is a global manufacturer of industrial and vegetation management equipment. Its products are used across public and private infrastructure maintenance, along with land management operations around the world.

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