By Joan E. Solsman, Dow Jones Newswires, August 10, 2010
Industrial manufacturer Blount International Inc. (BLT) said it acquired a company that makes farm and ranch equipment for $90 million in cash, which it expected would boost profit next year.
Blount's takeover of SP Cos. and its subsidiary SpeeCo Inc. gives the company an immediate, large entry into new markets that complement its current businesses, according to Chairman and Chief Executive Josh Collins.
"SpeeCo's well-known and respected farm and ranch brands and experienced management team, coupled with our global distribution network, provide attractive growth opportunities," he said.
Blount said that the acquisition would result in some charges in 2010 but would boost earnings in 2011.
SpeeCo supplies log splitters, post-hole diggers, tractor three-point linkage parts and equipment and farm accessories. It had sales of $77.1 million in the year ended July 31.
Blount makes chains, bars and sprockets for the chainsaw industry, as well as yard-care accessories and concrete-cutting saws.