Nebraska, USA-based global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, Valmont acquired Australia-based leading wholesale supplier of irrigation parts, HR Products. The company announced the acquisition on July 7, 2023. However, it did not disclose the amount of the acquisition.
The transaction is expected to be an all-cash deal on hand. The companies further expect it as a lucrative deal with Year 1 revenue of approximately USD 45 million.
Purpose of acquisition by Valmont
With the latest acquisition of HR Products, Valmont has plans to fund the expansion of the company’s geographic footprint and grow its presence in a key agriculture market.
What the President of Global Irrigation has to add about the acquisition
Joshua Dixon, President of Global Irrigation, said, “Aftermarket parts and services are a critical component of our global agriculture growth strategy, as it allows us to better serve our customers through extended offerings and expands our total addressable market. Due to the long life cycle of irrigation equipment, there is a substantial market to replace wearable parts. This acquisition positions us very well to meet this demand, leveraging our existing Valley® dealer network for distribution and service and large installed machine base in the region to grow recurring, high-value revenue streams and help lessen the cyclicality in our agriculture business.”
He further continued, “Australia is a well-developed agriculture market, and the region is focused on converting from flood irrigation as it has experienced persistent water supply challenges. HR Products has a proven and successful distribution model with strong customer relationships and robust operations across a geographically-diverse country. We are excited to welcome the HR Products team to Valmont and look forward to integrating the business and providing further value to Australian agriculture customers.”
About HR Products
The Australia-based HR Products provides a broad range of irrigation products to serve the agriculture and landscaping industries.
The company belongs to Perth, Western Australia and came into existence in 1979. Since its inception, it has had nearly 100 employees and six warehouse facilities. It further boasts an extensive dealer network across the country that further strengthens Valmont’s market leadership.
About Valmont
In 1946, Founders Robert B. Daugherty launched Valmont. For more than 75 years, Valmont has been a global leader in creating vital infrastructure and advancing agricultural productivity. The company’s mission is to do more with less by innovating through technology.
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