Toro Announces Sale of Trencor Brand and Auger Boring Category Under American Augers Brand

The Toro Company has announced the sale of its Trencor equipment brand and the auger boring product category, a subset of the American Augers brand. The transactions do not disclose the terms. The company will continue to manufacture American Augers' underground equipment, while the divesture of Trencor includes assets specific to large-track trenchers and mining equipment. The moves are part of a commitment to disciplined portfolio management and prudent capital allocation strategies.

The Toro Company (NYSE: TTC), a leading global provider of solutions for the outdoor environment, has announced the sale of its Trencor equipment brand and the auger boring product category, a subset of the American Augers brand. The transactions, which did not disclose terms, are part of the company's strategy to focus on core underground construction segments and improve operational efficiency.

The sale of the auger boring product category means that The Toro Company will continue to manufacture American Augers' underground equipment, including large horizontal directional drills, pumps, and fluid cleaning systems at its West Salem, Ohio location. The divesture of Trencor includes assets specific to the full line of large-track trenchers and mining equipment.

Peter Moeller, group vice president, Construction Businesses at The Toro Company, stated, "Today’s announcement within our construction portfolio places additional focus on the core underground categories that will provide the greatest growth opportunity and best position our business for future success" [1].

These transactions reflect The Toro Company's commitment to disciplined portfolio management and prudent capital allocation strategies. By divesting non-core assets, the company aims to remain competitive in its core underground construction markets while focusing on efficiency improvements and synergy gains.

The sale of Trencor and American Augers became part of The Toro Company's portfolio through the acquisition of Charles Machine Works in 2019, which includes leading underground construction brands such as Ditch Witch [1].

References:
[1] https://www.stocktitan.net/news/TTC/the-toro-company-announces-sale-of-trencor-brand-and-auger-boring-3gopm9e4yspg.html