Titan Machinery Acquires Agriculture Equipment Dealer O'Connors For $63M

Titan Machinery Inc TITN said it has entered into a definitive purchase agreement to acquire J.J. O'Connor & Sons Pty. Ltd. for $63 million in cash.

O'Connors is a Case IH dealership group in Australia. In the unaudited full fiscal year period ended June 30, 2023, O'Connors generated revenue of $258 million and EBITDA of $21.4 million.

The accretive acquisition generated approximately $0.40 in annual proforma earnings per share.

"This transaction marks our entry into the Australian agriculture market, as we continue to seek opportunities for Titan to expand its reach, both domestically and abroad," said David Meyer, Titan Machinery's Chairman and CEO.

The combined Titan Machinery enterprise, along with the O'Connors proforma run rate results, would equate to approximately $2.9 billion in revenue, and $5.20 in diluted earnings per share an annualized basis, based on the midpoint of Titan's full fiscal year 2024 guidance ending in January 2024.

Titan held cash at the end of the second quarter of fiscal 2024 of $52.8 million. The transaction is expected to close in the fourth quarter of calendar 2023.

The company raised FY24 EPS outlook from $4.50 - $5.10 to $4.60 - $5.25 versus an estimate of $4.90.

Price Action: TITN shares traded higher by 17.88% at $34.28 on the last check Thursday.