Alamo Group Strengthens Industrial Arm with Strategic Purchase

Alamo US0113111076

Alamo Group has unveiled plans to acquire Petersen Industries in a strategic move valued at approximately $170 million. The all-cash deal, expected to finalize in the first quarter of 2026, is designed to bolster the company's industrial equipment division.

The transaction centers on the purchase of Petersen Industries, a specialist in truck-mounted grapple loader systems, for $166.5 million in cash. This price represents roughly 7.9 times Petersen's adjusted EBITDA. For over 65 years, Petersen has primarily served municipal clients in the bulky waste disposal sector. Alamo's leadership views the acquisition as a direct expansion of its infrastructure maintenance portfolio.

Robert Hureau, Alamo Group's Chief Executive Officer, characterized Petersen as an "excellent fit" that aligns seamlessly with the company's broader acquisition strategy.

Performance Context and Strategic Focus

This purchase occurs against a backdrop of robust performance within Alamo's existing industrial equipment segment. The division reported a significant 17.0% revenue increase during the third quarter of 2025. The move underscores management's commitment to pursuing external growth through profitable acquisitions in stable market niches.

While other segments, such as vegetation management, have recently faced challenges, Alamo is deliberately concentrating its efforts on the high-performing industrial equipment sector.

Market Perspective and Forward Look

Investor attention now turns to the upcoming release of fourth-quarter 2025 financial results, scheduled for late February 2026. Market observers will closely monitor the initial integration progress of Petersen Industries into Alamo's operations.

Currently, the consensus price target among analysts for Alamo Group's shares over the next twelve months stands at $219.75. The stock recently traded at $178.03, a level notably below its 52-week high of $233.29. Forthcoming earnings reports will be critical in assessing whether strategic acquisitions like this one can provide sustained growth momentum.