Alta Equipment Group Inc. in Livonia today announced that it has entered into a definitive agreement to acquire Ecoverse Industries, a full-line distributor of environmental treatment equipment headquartered in Avon, Ohio, with 15 sub-dealers across the ‘North America.
The purchase price includes $42.5 million in cash, $2.5 million in Alta common stock and a $6.0 million seller’s note at closing. In addition, the purchase price includes contingent consideration in the form of an earn-out whereby the sellers can earn an additional $4.0 million in Alta common stock and $12.0 million in cash on five years, subject to future EBITA growth.
“The acquisition of Ecoverse is exciting for our business as it represents our first investment in large-scale equipment distribution, giving us master reseller rights to distribute best-in-class environmental equipment to resellers and customers across North America,” said Ryan Greenawalt. , CEO of Alta.
The agreement grants Alta exclusive distribution rights in North America for European OEMs, including Doppstadt, Backus, Backers and Tiger Depackaging products. It also increases the size of the field equipment population in North America and will provide future opportunities for parts and service growth.
Ecoverse generated approximately $64.3 million in revenue, $10.0 million in net income, adjusted EBITDA of $10.1 million, and $9.7 million in adjusted net income before tax for the reporting period. twelve months ending July 2022.
Ecoverse’s brand name, employees and management team will remain in place post-closing. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2022.
Including Ecoverse, since Alta’s 2020 IPO, it has completed 13 acquisitions that generated $440.3 million in revenue and $52.5 million in adjusted EBITDA.
More information about Ecoverse, its products and applications can be found here.
Learn more about Alta Equipment and how they were honored with the 2021 ACG M&A All-Star Award for $50M+ Deal of the Year here.