Morbark produces a full line of equipment and aftermarket parts for forestry, tree maintenance, biomass, land management and recycling markets

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Image: Morbark’s Slow-Speed Shredder. Photo: Courtesy of Morbark, LLC.

Private equity firm Stellex Capital Management has signed an agreement to sell Morbark, a manufacturer of agricultural equipment, to Alamo Group for $352m (£282m).

Founded in 1957, Morbark produces equipment and aftermarket parts for the forestry, tree maintenance, biomass, land management and recycling markets. Based in Winn, Michigan, the company has subsidiaries in Wooster, Ohio, and Roxton Falls, Québec.

Morbark and its subsidiaries manufacture equipment and aftermarket parts used for clearing land, grinding/chipping and converting trees, wood and related organic waste in maintenance and recycling applications.

The company’s affiliate brands are Rayco, DENIS CIMAF, and Boxer Equipment.

Morbark and its brands produce brush chippers, stump cutters, mini skid steers, forestry mulchers, aerial trimmers, whole tree and biomass chippers, flails, horizontal and tub grinders, sawmill equipment, material-handling systems and mulcher head attachments for excavators, backhoes and skid steers.

Stellex Capital managing director David Waxman said: “Our investment in Morbark demonstrates our ability to rapidly transform family run industrial equipment businesses into best-in-class providers within their industry. We would like to thank the Morbark team for their strategic vision, dedication, and execution over these past three and a half years.

“We are very proud to have worked alongside them transforming Morbark into a leading provider of mobile industrial equipment and believe the Company is well positioned to continue to capitalize on the strong market tailwinds within biomass recycling and tree care maintenance.”

The deal is subject to customary closing conditions and regulatory approvals.

After its acquisition by Stellex Capital in 2016, Morbark has increased its headcount by more than 200. The company’s revenue also nearly doubled and EBITDA increased by over 200%.

Additionally, the manufacturer completed two add-on acquisitions, Rayco Manufacturing in 2017 and Denis Cimaf in 2018, to expand its product offering and geographic presence.

Morbark CEO Dave Herr said: “We would like to thank Stellex for recognizing Morbark’s potential and investing both time and capital in order for us to achieve our strategic vision. Together with Stellex, Morbark has greatly enhanced operations, implementing lean initiatives and best-in-class manufacturing practices that have resulted in new and improved product redesigns, significant reduction in lead times, and improved delivery performance.

“We are grateful for our time working with Stellex and look forward to this next chapter as part of Alamo, an ideal suitor given its operating philosophy that will allow us to maintain our brands, operations, and successful momentum while further enhancing various operational synergies and accelerating international growth.”