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10 DECEMBER 2014 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com INDUSTRY NEWS HOT News Toro to acquire BOSS professional snow and ice management business The Toro Company has entered into a definitive agreement to acquire the BOSS professional snow and ice management business of privately-held Northern Star Industries, Inc. The transaction is subject to customary closing conditions, including regulatory approvals, and currently is expected to close during Toro's fiscal 2015 first quarter. Based in Iron Mountain, Mich., BOSS designs, manufactures, and sells snowplows; salt and sand spreaders; and related parts and accessories, for light- and medium-duty trucks, ATVs, UTVs and loaders. BOSS sales in 2014 are anticipated to be approximately $125 million. "With the addition of BOSS to our existing market-leading professional contractor businesses, we are even better positioned to strengthen and grow our relationships with these important customers by providing them with the innovative and durable equipment and high-quality service they need for each season," said Michael J. Hoffman, Toro's chairman and chief executive officer. "We've long been interested in the professional snow and ice management category. We are impressed with BOSS' solid business performance, and we are optimistic about the opportunities for growth through product line expansion and in international markets. "Through this acquisition, we will gain another strong professional contractor brand, a portfolio of reliable counter-seasonal equipment, efficient manufacturing operations, and a well-established and broad North American distribution channel for these products. In addition, BOSS brings a talented and experienced management team, a passionate and dedicated team of employees, and a culture of innovation and customer service that is similar to our own." David Brule II, president of BOSS, said, "As a privately-held business in a smaller community, it is essential to us that BOSS transition to a company that not only is well-positioned to take us to the next level but also shares our commitment to innovation, customers, employees and the communities in which we live and work. We are impressed with Toro, its rich 100-year history and consistent record of performance. Overall, it is a great fit for us. On behalf of myself and the entire BOSS team, we look forward to the next phase of the BOSS journey as part of the Toro family." The purchase price is approximately $227 million, which Toro will pay primarily in cash except for $30 million that will be paid in the form of a three-year unsecured promissory note. Toro plans to fund the cash portion of the purchase price with cash on hand and borrowings under a new five-year unsecured revolving credit facility that includes a senior term loan. Toro expects this acquisition to be slightly accretive to fiscal 2015 earnings. Hustler Turf to launch utility vehicle line Based in Hesston, Kan., Hustler Turf Equipment announced Nov. 6 that it has purchased a utility vehicle product line from a European construction equipment manufacturer. Hustler Turf has acquired tooling and design for the utility vehicle, with plans to expand its line of products. "We have developed patented technology to set Hustler well apart from other vehicles in the market; we simply needed a well-built vehicle to incorporate the technology," said Adam Mullet, Hustler Turf vice president of sales and marketing. "One look at the design and build quality of these vehicles, and we knew right away it was a perfect match. The suspension, drivability, speed, and high quality will put this vehicle in its own category." The utility vehicle line will be manufactured at the facility in Hesston, Kan., with production slated to begin in the fall of 2015. Kohler Engines names new president Following Tom Cromwell's appointment to the group president at Kohler Co.'s Power Group in September, the company has promoted Brian Melka to the role of president – engines Americas. Melka assumes full responsibility for the engines business in the Americas region, establishing strategic direction, managing operational demands, driving growth and profitability objectives, and attracting and developing talent. In addition, he will have worldwide responsibility for new product development, marketing and overall growth of the gasoline engines product lines. Melka joined Kohler in 2013 in the role of vice president. Prior to Kohler, Melka served in numerous senior capacities at Rexnord Corporation, where he most recently held the role of vice president – global mining and product management. Before joining Rexnord, he spent more than 12 years working for various Textron, Inc. businesses, including Greenlee Textron and Jacobsen Textron. Melka holds a bachelor's degree in finance from the University of Wisconsin and an MBA from the University of Wisconsin – Whitewater, and he is a certified Six Sigma Master Black Belt. Brian Melka