Tennant Company has announced that it has finalised a purchase agreement with Applied Sweepers, the maker of the Green Machines brand of cleaning equipment. The deal, valued at approximately $68 million (USD), was closed in the first two weeks of March. Completion of the transaction is subject to concluding routine environmental due diligence and other customary closing conditions.
“Tennant Company sees tremendous potential to build upon Applied Sweepers’ highly-regarded service organisation, its pride in innovation and, of course, its stellar reputation for high-quality products,” said Chris Killingstad, president and CEO of Tennant Company. “We have found a strong and beneficial alignment of Tennant Company’s long-term goals and those of Applied Sweepers: international market expansion, innovative product development, improving operational efficiencies and leveraging a strong distributor network.”
Francis Galashan, chairman of Applied Sweepers, said: "Applied Sweepers is very excited about its future within Tennant Company. Both are world-leaders with a proven pedigree in producing high quality, strongly innovative solutions to customers' cleaning needs. The complementary fit between our two companies' current product lines and our respective areas of strength in distributor networks makes us believe this will be a very successful partnership."
Killingstad and Galashan confirmed that current Applied Sweepers management will stay in place to continue to drive growth in the city cleaning business. This acquisition, combined with its 2006 acquisition of Hofmans Machinefabriek in The Netherlands, provides Tennant Company with greater access to the $250 million European city cleaning market and will provide opportunities to further leverage both companies’ existing sales and service capabilities around the world.