Helps grow Toro’s global position in agricultural micro irrigation
and expand geographically in China
BLOOMINGTON, Minn.--(BUSINESS WIRE)--Sep. 30, 2013--
The Toro Company (NYSE:TTC) today announced that it has closed its
acquisition of Xiamen Xiangfeng Water Saving Equipment Co., Ltd. Terms
of the transaction were not disclosed. Located in China’s Xiamen City,
Xiamen Xiangfeng manufactures water-efficient drip irrigation products,
sprinklers, emitters and filters for agriculture, landscaping and green
house production.
“As we look to the future, water availability and increasing demand for
food are driving awareness for the importance of more efficient forms of
irrigation,” said Michael Drazan, vice president of Toro’s Global Micro
Irrigation Business. “Toro’s worldwide agricultural micro irrigation
business meets this challenge by delivering high-quality solutions for
growers.”
With China being a critical growth market for micro irrigation, this
acquisition provides a means to grow the company’s presence in this
important market. “We are expanding our business, as evidenced by this
acquisition and our recently completed micro irrigation manufacturing
facility in Romania to support the growing Asian and Eastern European
regions,” said Drazan.
Toro entered the agricultural micro irrigation business in 1996 with the
acquisition of James Hardie Irrigation, and has since grown its position
through the development of industry-leading drip technologies and
investments to expand globally.
About The Toro Company
The Toro Company (NYSE: TTC) is a
leading worldwide provider of innovative turf, landscape, rental and
construction equipment, and irrigation and outdoor lighting solutions.
With sales of more than $1.9 billion in fiscal 2012, Toro’s global
presence extends to more than 90 countries through strong relationships
built on integrity and trust, constant innovation, and a commitment to
helping customers enrich the beauty, productivity and sustainability of
the land. Since 1914, the company has built a tradition of excellence
around a number of strong brands to help customers care for golf
courses, sports fields, public green spaces, commercial and residential
properties, and agricultural fields. More information is available at www.toro.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 or negative growth rates
in global and domestic economies, resulting in rising or persistent
unemployment and weakened consumer confidence; the threat of terrorist
acts and war, which may result in contraction of the domestic and global
economies; drug cartel-related violence, which may disrupt our
production activities and maquiladora operations based in Juarez,
Mexico; fluctuations in the cost and availability of raw materials and
components, including steel, engines, hydraulics, resins and other
commodities and components; fluctuating fuel and other costs of
transportation; the impact of abnormal weather patterns, natural
disasters and global pandemics; the level of growth or contraction in
our key markets; government and municipal revenue, budget and spending
levels, which may negatively impact our grounds maintenance equipment
business in the event of reduced tax revenues 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, including
continued acceptance of and demand for micro irrigation solutions;
increased competition; our ability to achieve the revenue growth,
operating earnings and employee engagement goals of our multi-year
employee initiative called “Destination 2014”; our increased dependence
on international sales and the risks attendant to international
operations and markets, including political, economic and/or social
instability in the countries in which we manufacture or sell our
products resulting in contraction or disruption of such markets; credit
availability and terms, interest rates and currency movements including,
in particular, our exposure to foreign currency risk; our relationships
with our distribution channel partners, including the financial
viability of distributors and dealers; our ability to successfully
achieve our plans for and integrate acquisitions, including the
completed acquisition of the micro irrigation business in China
disclosed in this press release, and manage alliances or joint ventures,
including Red Iron Acceptance, LLC; the costs and effects of changes in
tax, fiscal, government and other regulatory policies, including rules
relating to environmental, health and safety matters, and Tier 4
emissions requirements; unforeseen product quality or other problems in
the development, production and usage of new and existing products; loss
of or changes in executive management or key employees; ability of
management to manage around unplanned events; our reliance on our
intellectual property rights and the absence of infringement of the
intellectual property rights of others; and the occurrence of litigation
or claims. In addition to the factors set forth in this paragraph,
market, economic, financial, competitive, legislative, governmental,
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
release.
Source: The Toro Company
The Toro Company
Investor Relations
Amy Dahl,
952-887-8917
Managing Director, Corporate Communications and
Investor Relations
amy.dahl@toro.com
or
Media
Relations
Branden Happel, 952-887-8930
Senior Manager,
Public Relations
branden.happel@toro.com
