Sociedade Alfa Ltda., based in Sao Paulo, Brazil, with a branch office in Curitiba and a plant in Limeira, is recognized as the Brazilian market leader in the cleaning industry, reporting just over $9 million in sales revenue for 2007.
“Tennant Company is interested in opportunities that expand our sales and service networks and enhance our suite of product offerings. We’re very excited to see all three of these coming together with Alfa,” said Chris Killingstad, President and CEO of Tennant Company. “Alfa’s strong name recognition in the commercial equipment market, combined with Tennant’s industrial equipment products and specialty floor coatings, creates a tremendous foothold and foundation for growth,” Killingstad said.
Salvator Haim, main shareholder of Sociedade Alfa comments: “This merger ratifies our opinion after 30 years in the business that the best way to benefit in the Brazilian and South American cleaning equipment market is to combine local products and service with international ‘know how’. It is particularly motivating to join with Tennant Company to produce and deliver our customers the very best of global technology."
In addition to sales of its well-known Alfa brand of equipment, the company has been a distributor of other branded cleaning equipment. Going forward, the newly combined company will sell only Tennant and Alfa brand equipment.
This is the second acquisition announced by Tennant Company in 2008. The company recently announced it has signed a purchase agreement with Applied Sweepers, maker of Green Machines® brand outdoor cleaning equipment, based in Falkirk, Scotland.
Killingstad noted that these transactions are consistent with the company's strategy of pursuing add-on acquisitions to gain access to interesting products or to expand its global sales and service coverage.
We caution that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. For additional information about factors that could materially affect Tennant's results, please see our other Securities and Exchange Commission filings, including disclosures under "Risk Factors."
We do not undertake to update any forward-looking statement, and investors are advised to consult any further disclosures by us on this matter in our filings with the Securities and Exchange Commission and in other written statements we make from time to time. It is not possible to anticipate or foresee all risk factors, and investors should not consider any list of such factors to be an exhaustive or complete list of all risks or uncertainties.