Toromont Industries (TIH) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition targets a key supplier in the fast-growing data center market, securing a critical part of the supply chain for backup power enclosures.

• Acquisition of 60% of AVL Manufacturing enhances capabilities in power generation and storage enclosures, supporting growth in the data centre market across eastern North America.

• Expands reach into the data center sector and complements existing power equipment and CIMCO businesses.

• Expands product and service offerings, secures supply for Power Systems business, and opens opportunities to enter new regions.

• Long-standing relationship with AVL and its leadership, leveraging existing synergies and industry expertise.

Financial terms and conditions

• Purchase price paid in cash and shares, with customary post-closing adjustments.

• Commitment to acquire the remaining 40% of AVL by 2031, with timing based on business performance.

• Transaction is accretive and meets or exceeds internal hurdle rates, but not expected to materially impact near-term revenue, earnings, or balance sheet.

• Full financial details to be disclosed in upcoming quarterly results.

Synergies and expected cost savings

• AVL’s engineering and design capabilities expected to drive innovation and growth.

• Potential for cross-business opportunities with CIMCO and other divisions.

• Broader customer access and enhanced value proposition for data center clients.