Alta Equipment Group acquired Yale Industrial Trucks, a privately-held Yale lift truck dealer with five locations in southeastern Canada.

Yale Industrial Trucks provides sales, service and rental of material handling equipment throughout its territory, which encompasses Canada’s two largest population centers of Toronto and Montreal.

“The YIT acquisition is consistent with our growth strategy, which includes expanding into new markets which offer substantial opportunities to increase the scale of our business,” Ryan Greenawalt, CEO of Alta Equipment Group, said. “This acquisition extends our operations into an international market for the first time and bridges our existing U.S. territories. It will benefit our material handling business, as Quebec and Ontario represent approximately 80% of the market opportunity in Canada, and the greater Toronto area is one of the top five industrial distribution markets in North America. Culturally, they have a rich 50-year history of providing outstanding service to customers in the Canadian market, which fits with our focus. We’re pleased to welcome YIT to the Alta family.”

Yale Industrial Trucks generated approximately $46.6 million in revenue and adjusted EBITDA of $9.4 million in the trailing 12 months through May 2022. The implied enterprise value of the acquisition is estimated to be approximately $33.5 million, subject to post-closing purchase price adjustments. Yale Industrial Trucks has been a dealer since 1972 and has more than 140 employees, 75 of which are service technicians. It is headquartered in Woodbridge, CA.

Alta Equipment Group expects to close both the acquisition of Yale Industrial Trucks and an amendment to its asset-based loan and floorplan first lien credit agreements in Q3/22. The amendments will exercise $80 million of the $150 million accordion function currently included in the company’s asset-based revolving line of credit, increasing borrowing capacity from $350 million to $430 million, which will include a $35 million Canadian-denominated sublimit facility. The amendments will also increase the borrowing capacity of Alta Equipment Group’s revolving floor plan facility by $10 million from $50 million to $60 million.