The Toro Company Acquires Rain Master Irrigation Systems
Rain Master products become part of the company's Irritrol(R) line;
Strengthens position in the central controller market
BLOOMINGTON, Minn.--(BUSINESS WIRE)--Aug. 17, 2007--The Toro Company (NYSE:TTC) today announced it has acquired Rain Master Irrigation Systems, a manufacturer of irrigation controllers based in Simi Valley, Calif. The purchase of Rain Master will help strengthen the company's position in the central controller market, enhance its established distribution network, and reinforce a long-term strategy to broaden its offering of precision irrigation technologies.
For over 25 years, Rain Master has been a market leader of innovative irrigation central control systems, controllers and handheld remote controls for the landscape and commercial markets. With a strong presence in many parts of the West and expansion into growth areas throughout the country, Rain Master products will be an important addition to the Irritrol line and continue to be sold under the Rain Master brand.
"This purchase is consistent with our strategy to pursue acquisitions that will strengthen our position in the water management market and drive our revenue growth," said Michael Hoffman, chairman and CEO of The Toro Company. "Rain Master is an established, well-respected company in the irrigation industry and will provide us with a product line that helps enhance our global offering now and in the future."
As a result of the purchase, Jim Sieminski, CEO, and the employees of Rain Master will become part of The Toro Company's water management team. "We are pleased to be joining forces with The Toro Company, an irrigation leader that shares our goal of creating technologies that support the efficient use of water," said Sieminski. "Today's announcement is but the first step in our journey to pursue these mutual goals."
About The Toro Company
The Toro Company (NYSE:TTC) is a leading worldwide provider of outdoor beautification products, support services and integrated solutions. With sales of $1.8 billion in 2006, Toro is committed to providing environmentally responsible products of customer-valued quality and innovation. Since 1914, the company has built a tradition of excellence around a number of strong brands that serve a customer base that includes golf course superintendents, groundskeepers, sports field managers, landscape and irrigation contractors, fruit and vegetable growers, and homeowners. The Toro Company is headquartered at 8111 Lyndale Avenue in Bloomington, Minn. Visit the company Web site at www.thetorocompany.com.
Safe Harbor
Statements made in this news release, which are forward-looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied. These uncertainties include factors that affect all businesses operating in a global market as well as matters specific to Toro. Particular risks and uncertainties that may affect the company's operating results or overall financial position at the present include: slow growth rates in global and domestic economies, resulting in rising unemployment and weakened consumer confidence; the threat of further terrorist acts and war, which may result in contraction of the U.S. and worldwide economies; fluctuations in the cost and availability of raw materials, including steel and other commodities; rising costs of transportation; the impact of abnormal weather patterns and natural disasters; level of growth in the golf market; reduced government spending for grounds maintenance equipment due to reduced tax revenue and tighter government budgets; dependence on The Home Depot as a customer for the residential segment; elimination of shelf space for our products at retailers; inventory adjustments or changes in purchasing patterns by our customers; market acceptance of existing and new products; increased competition; our ability to achieve the goals for the new three-year growth, profit and asset management initiative (GrowLean) which is intended to improve our revenue growth, after-tax return on sales and working capital efficiency; the company's ability to achieve net sales and net earnings per diluted share growth in fiscal 2007; our increased dependence on international sales and the risks attendant to international operations; interest rates and currency movements including, in particular, our exposure to foreign currency risk; financial viability of distributors and dealers; our ability to successfully achieve our plans for and integrate acquisitions and manage alliances; the costs and effects of complying with changes in tax, fiscal, government and other regulatory policies, including rules relating to environmental, health and safety matters; unforeseen product quality problems in the development, production and usage of new and existing products; loss of or changes in executive management; ability of management to manage around unplanned events; the occurrence of litigation or claims, including the previously disclosed pending litigation against the company and other defendants that challenges the horsepower ratings of lawnmowers, of which the company is currently unable to assess whether the litigation would have a material adverse effect on the company's consolidated operating results or financial condition, although an adverse result might be material to operating results in a particular reporting period. In addition to the factors set forth in this paragraph, market, economic, financial, competitive, weather, production and other factors identified in Toro's quarterly and annual reports filed with the Securities and Exchange Commission, could affect the forward-looking statements in this press release. Toro undertakes no obligation to update forward-looking statements made in this release to reflect events or circumstances after the date of this statement.
CONTACT: The Toro Company
Investor Relations
John Wright, 952-887-8865
Director, Investor Relations
or
Media Relations
Connie Kotke, 952-887-8984
Manager, Corporate Communications
pr@toro.com
SOURCE: The Toro Company