Snowplow maker Douglas Dynamics to go public

Douglas Dynamics Inc., a Milwaukee-based maker of snowplows and salt and sand spreaders, filed plans to go public in an offering projected to raise up to $150 million.

The offering was disclosed in a prospectus filed as stock markets closed for business Friday afternoon.

Douglas describes itself as "the North American leader in the design, manufacture and sale of snow and ice control equipment for light trucks, which consists of snowplows and sand and salt spreaders."

The company sells plows and spreaders under the Western, Fisher and Blizzard brands. It said it believes it has a market share of more than 50% in light-truck snow plows and spreaders.

For the nine months ended Sept. 30, Douglas reported sales of $125.2 million, down from $132.6 million a year earlier. Net income for the first nine months of the year was $2.7 million, down from $6.4 million.

Proceeds from the offering will be used to reduce the company's debt, the company said. The company expects to be listed on the New York Stock Exchange. Underwriters for the offering are listed as Credit Suisse Securities, Oppenheimer & Co., Piper Jaffray & Co. and Robert W. Baird & Co.

At year end, Douglas Dynamics said, it had 562 employees, including 173 office and 389 factory workers.

Douglas has operations in Milwaukee, Tennessee and Maine but last year announced plans to close its plant in Johnson City, Tenn., and shift production to Milwaukee and Rockland, Maine. The move will result in the loss of 100 jobs in Tennessee and the addition of 35 jobs in Milwaukee and 50 jobs in Maine. The move is projected to save the company $4 million a year.

Los Angeles-based Aurora Capital Group, a private equity firm, is the primary owner of Douglas Dynamics, holding a 67% stake in the company. Another Los Angeles asset manager, Ares Management, holds a 33% stake in the company.

Details on the price and number of shares to be offered were not available.

Posted February 1, 2010

Share this page:

COMMENTS: 0