Tennant Company to Acquire Brazilian Market Leader Sociedade Alfa Ltda.
Tennant Cites Products and Service as Key Attractors
MINNEAPOLIS, Minn., Feb. 22, 2008—
Tennant Company (NYSE: TNC), a world leader in designing, manufacturing and marketing solutions that help create a cleaner, safer world, today announced that it has entered into a purchase agreement with Sociedade Alfa Ltda., maker of the Alfa brand commercial cleaning machines. The deal is expected to close within 30 to 60 days. Completion of the transaction is subject to certain government and other third-party consents, and other customary closing conditions. Terms of the agreement have not been disclosed.Sociedade Alfa Ltda., based in Sao Paulo, Brazil, with a branch office in Curitiba and a plant in Limeira, is recognized as the Brazilian market leader in the cleaning industry, reporting just over $9 million in sales revenue for 2007.
“Tennant Company is interested in opportunities that expand our sales and service networks and enhance our suite of product offerings. We’re very excited to see all three of these coming together with Alfa,” said Chris Killingstad, President and CEO of Tennant Company. “Alfa’s strong name recognition in the commercial equipment market, combined with Tennant’s industrial equipment products and specialty floor coatings, creates a tremendous foothold and foundation for growth,” Killingstad said.
Salvator Haim, main shareholder of Sociedade Alfa comments: “This merger ratifies our opinion after 30 years in the business that the best way to benefit in the Brazilian and South American cleaning equipment market is to combine local products and service with international ‘know how’. It is particularly motivating to join with Tennant Company to produce and deliver our customers the very best of global technology."
In addition to sales of its well-known Alfa brand of equipment, the company has been a distributor of other branded cleaning equipment. Going forward, the newly combined company will sell only Tennant and Alfa brand equipment.
This is the second acquisition announced by Tennant Company in 2008. The company recently announced it has signed a purchase agreement with Applied Sweepers, maker of Green Machines® brand outdoor cleaning equipment, based in Falkirk, Scotland.
Killingstad noted that these transactions are consistent with the company's strategy of pursuing add-on acquisitions to gain access to interesting products or to expand its global sales and service coverage.
About Tennant Company
Minneapolis-based Tennant Company (NYSE: TNC) is a world leader in designing, manufacturing and marketing solutions that help create a cleaner, safer world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; and coatings for protecting, repairing and upgrading concrete floors. Tennant Company's global field service network is the most extensive in the industry. Tennant Company has manufacturing operations in Minneapolis, Minn.; Holland, Mich.; Uden, The Netherlands; Northampton, United Kingdom; and Shanghai, China; and sells products directly in 15 countries and through distributors in more than 80 countries. For more information, visit www.tennantco.com.About
Sociedade Alfa Ltda.Established in 1944, Sociedade Alfa Ltda. has established its market position through a network of distributors and dealers in Brazil and other parts of South America. Manufacturer of the Alfa line of equipment that includes automatic scrubbers, ride-on sweepers and scrubbers, and vacuums, the company employs approximately 90 people among its three locations.Forward-Looking Statements
Certain statements contained in this document as well as other written and oral statements made by us from time to time are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts of future events. Any such expectations or forecasts of future events are subject to a variety of factors. These include factors that affect all businesses operating in a global market as well as matters specific to us and the markets we serve. Particular risks and uncertainties that may affect the forward-looking statements in this release include: geopolitical and economic uncertainty throughout the world; the potential for increased competition in our business; fluctuations in the cost or availability of raw materials and purchased components; the success and timing of new products; our ability to achieve projections of future financial and operating results; successful integration of acquisitions, including the ability to carry acquired goodwill at current values; the parties’ abilities to complete the transaction described in this release; and our plans for growth.We caution that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. For additional information about factors that could materially affect Tennant's results, please see our other Securities and Exchange Commission filings, including disclosures under "Risk Factors."
We do not undertake to update any forward-looking statement, and investors are advised to consult any further disclosures by us on this matter in our filings with the Securities and Exchange Commission and in other written statements we make from time to time. It is not possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties.
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Tom PaulsonVice President and Chief Financial Officer
763-540-1204
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