Douglas Dynamics, a North American manufacturer and upfitter of commercial work truck attachments and equipment, completed a sale-leaseback transaction with TPG Angelo Gordon, a diversified credit and real estate investing platform within TPG.
The transaction involves the company’s facilities located in Huntley, Illinois; Manchester, Iowa; Rockland, Maine; Madison Heights, Michigan; and Milwaukee, Wisconsin.
The transaction comprises seven facilities and approximately 780,000 square feet of manufacturing and upfitting space and is valued at $64.2 million. Net of expenses and taxes, the company is expected to receive net proceeds of approximately $50 million.
Under the terms of the transaction, the initial lease for the assets is 15 years, with two 10-year options to renew. The facilities serve as critical elements of the company’s operations, and the company expects to continue operating for many years to come. The company intends to use the net proceeds from the transaction to pay down its term loan debt and for other corporate purposes.
“This transaction highlights our commitment to enhance our financial flexibility while maintaining operational continuity,” Sarah Lauber, executive vice president and chief financial officer of Douglas Dynamics, said. “These long-term lease agreements also reinforce our commitment to the communities in which we have operated for decades. By partnering with a respected platform like TPG Angelo Gordon to leverage our real estate assets, we can optimize our balance sheet and better position ourselves for future investments in the business.”
“We are pleased to support Douglas Dynamics as it seeks to strengthen and build upon its longstanding position and operations,” Gordon Whiting, managing director and co-head of TPG, said. “Our team is proud to work with businesses like Douglas Dynamics, who provide critical services and high-quality products across the U.S. and Canada. We look forward to many years of successful partnership.”
