Alamo Group Acquires Petersen Industries for $166.5M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
0mins
Should l Buy ALG?
Alamo Group announced that it has signed a definitive agreement to acquire Petersen Industries, a manufacturer of truck-mounted grapple loader equipment for a purchase price of $166.5M. The purchase price, which is subject to customary post-closing adjustments, will be financed with a combination of cash on hand and availability under Alamo Group's credit facility. When adjusted for the present value of expected tax benefits, the purchase price is approximately $150M. The price represents approximately 7.9x earnings before interest, taxes, depreciation and amortization, not including expected positive run-rate synergies. Upon closing, Petersen will become part of Alamo Group's Industrial Equipment Division. The company, based in Lake Wales, Florida, achieved annual revenue of approximately $75M in 2024. The Company anticipates completing the transaction during the first quarter of 2026, subject to regulatory approval and customary closing conditions. The acquisition is expected to be accretive to Alamo Group's growth and margins and to deliver solid recurring revenue from its aftermarket parts and services offerings.
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Analyst Views on ALG
Wall Street analysts forecast ALG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALG is 201.00 USD with a low forecast of 190.00 USD and a high forecast of 212.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 202.690
Low
190.00
Averages
201.00
High
212.00
Current: 202.690
Low
190.00
Averages
201.00
High
212.00
About ALG
Alamo Group Inc. is engaged in designing, manufacturing, distributing and providing equipment for infrastructure maintenance, agriculture and other applications. Its segments include the Vegetation Management Division and Industrial Equipment Division. The Vegetation Management Division includes Forges Gorce, Alamo Industrial equipment, Tiger equipment, Morbark, mowing and forestry/tree care operations, among others. The Industrial Equipment Division includes the Company’s vocational truck business and other industrial operations such as excavators, vacuum trucks, street sweepers, snow removal equipment, and the Royal Truck business. Its products include truck and tractor-mounted mowing and other vegetation maintenance equipment, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements, forestry equipment and related after-market parts and services. It has business operations in North America, South America, Europe, and Australia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alamo Group Completes Acquisition of Petersen Industries
- Acquisition Completed: Alamo Group has finalized its acquisition of Petersen Industries, aiming to enhance its market position among municipal and industrial customers, with expectations to boost product innovation through resource integration.
- Market Leadership: CEO Robert Hureau stated that the acquisition will further solidify Petersen's market-leading position and expand sales coverage by leveraging Alamo's channel network, thereby enhancing customer service.
- Product Diversity: Alamo Group's product line includes vacuum trucks, hydro-excavators, and street sweepers, and the acquisition will enrich its offerings to meet the maintenance needs of public and private infrastructure.
- Global Operations: As of September 30, 2025, Alamo Group operates 27 plants across North America, Europe, Australia, and Brazil, and the acquisition is expected to drive further global business expansion and market penetration.
See More
Alamo Group Completes Acquisition of Petersen Industries
- Acquisition Completed: Alamo Group has finalized its acquisition of Petersen Industries, aiming to enhance its market position among municipal and industrial customers, with expectations to boost product innovation through resource integration.
- Market Leadership: CEO Robert Hureau stated that the acquisition will further solidify Petersen's market-leading position and expand sales coverage by leveraging Alamo's channel network, enhancing customer service capabilities.
- Product Line Expansion: This acquisition diversifies Alamo Group's product portfolio, which includes vacuum trucks and street sweepers, addressing the needs of public and private infrastructure maintenance and increasing market competitiveness.
- Long-Term Value Creation: Alamo Group emphasizes that the combined strengths will generate long-term value for all stakeholders, showcasing optimism for future growth despite facing multiple risks such as economic conditions and supply chain disruptions.
See More
Algolia Board Member to Discuss AI Retail Transformation at NRF 2026
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- Multi-Modal Shopping Experience: The panel will focus on building adaptive shopping experiences for AI-native consumers, emphasizing retailers' leadership in this new commercial phase, which could significantly influence future market strategies.
- Business Impact Conversion: Algolia's VP John Stewart highlighted that the challenges faced by retailers in 2025 make converting AI into measurable business impact the top priority for 2026, underscoring the urgency of industry transformation.
- Industry Gathering: NRF 2026 will take place from January 11-13 in New York, expected to be a key platform for retailers to engage in hands-on problem-solving and innovation, further advancing AI applications in retail.
See More
Alamo Group Acquires Petersen Industries for $150 Million
- Acquisition Agreement: Alamo Group has reached a definitive agreement to acquire Petersen Industries for $166.5 million, with the deal expected to close in Q1 2026, aimed at enhancing the company's industrial equipment portfolio and supporting long-term growth.
- Financial Structure: The acquisition will be financed through a combination of cash on hand and credit facility capacity, with an effective purchase price of approximately $150 million, translating to an EBITDA multiple of 7.9x, indicating strong future earnings potential.
- Market Leadership: Petersen is a market leader in grapple truck loaders, primarily serving government agencies involved in bulky waste collection, and the acquisition will bolster Alamo's competitive position in this niche market.
- Strategic Implications: By integrating Petersen's aftermarket parts and service business, Alamo Group not only aims to improve margins but also to add recurring revenue, thereby enhancing overall financial performance and market share.
See More
Alamo Group Increases Quarterly Dividend by 13% to $0.34
- Dividend Increase: Alamo Group has raised its quarterly dividend to $0.34 per share, an increase of $0.04, which underscores the company's commitment to delivering long-term value to shareholders and is likely to attract more investor interest.
- Capital Allocation Strategy: This dividend hike reflects the company's disciplined capital allocation strategy, indicating strong financial resilience amid economic uncertainties, thereby enhancing market confidence in its future performance.
- Payment Schedule: The new dividend will be paid on January 29, 2026, to shareholders of record as of January 16, 2026, ensuring timely returns for investors and further solidifying trust between the company and its shareholders.
- Market Position: As a leading global manufacturer of industrial and vegetation management equipment, Alamo Group's consistent dividend growth not only enhances its market appeal but also reinforces its solid position in the infrastructure maintenance sector.
See More
Alamo Group Increases Quarterly Dividend by 13% to $0.34
- Dividend Increase: Alamo Group has announced a quarterly dividend increase to $0.34 per share, up $0.04 from the previous quarter, reflecting the company's commitment to delivering long-term value to shareholders and expected to boost investor confidence.
- Capital Allocation Strategy: The more than 13% increase in dividends aligns with the company's disciplined capital allocation strategy, demonstrating resilience and sustained profitability amid economic uncertainties.
- Payment Schedule: The new dividend will be paid on January 29, 2026, to shareholders of record as of January 16, 2026, ensuring timely returns for investors and further solidifying the company's relationship with its shareholders.
- Business Context: As a leading global manufacturer of industrial and vegetation management equipment operating 27 plants, Alamo Group's consistent dividend growth reflects its strong market position in infrastructure maintenance and future growth potential.
See More
Alamo Group Completes Acquisition of Petersen Industries
- Acquisition Completed: Alamo Group has finalized its acquisition of Petersen Industries, aiming to enhance its market position among municipal and industrial customers, with expectations to boost product innovation through resource integration.
- Market Leadership: CEO Robert Hureau stated that the acquisition will further solidify Petersen's market-leading position and expand sales coverage by leveraging Alamo's channel network, thereby enhancing customer service.
- Product Diversity: Alamo Group's product line includes vacuum trucks, hydro-excavators, and street sweepers, and the acquisition will enrich its offerings to meet the maintenance needs of public and private infrastructure.
- Global Operations: As of September 30, 2025, Alamo Group operates 27 plants across North America, Europe, Australia, and Brazil, and the acquisition is expected to drive further global business expansion and market penetration.
See More
Alamo Group Completes Acquisition of Petersen Industries
- Acquisition Completed: Alamo Group has finalized its acquisition of Petersen Industries, aiming to enhance its market position among municipal and industrial customers, with expectations to boost product innovation through resource integration.
- Market Leadership: CEO Robert Hureau stated that the acquisition will further solidify Petersen's market-leading position and expand sales coverage by leveraging Alamo's channel network, enhancing customer service capabilities.
- Product Line Expansion: This acquisition diversifies Alamo Group's product portfolio, which includes vacuum trucks and street sweepers, addressing the needs of public and private infrastructure maintenance and increasing market competitiveness.
- Long-Term Value Creation: Alamo Group emphasizes that the combined strengths will generate long-term value for all stakeholders, showcasing optimism for future growth despite facing multiple risks such as economic conditions and supply chain disruptions.
See More
Algolia Board Member to Discuss AI Retail Transformation at NRF 2026
- AI Retail Transformation: Algolia Board Member Bernadette Nixon will join David Clark from Frasers Group and Jennifer Myers from Microsoft Shopping at NRF 2026 to discuss how AI agents are reshaping retail, with thousands of retail leaders expected to drive industry innovation.
- Multi-Modal Shopping Experience: The panel will focus on building adaptive shopping experiences for AI-native consumers, emphasizing retailers' leadership in this new commercial phase, which could significantly influence future market strategies.
- Business Impact Conversion: Algolia's VP John Stewart highlighted that the challenges faced by retailers in 2025 make converting AI into measurable business impact the top priority for 2026, underscoring the urgency of industry transformation.
- Industry Gathering: NRF 2026 will take place from January 11-13 in New York, expected to be a key platform for retailers to engage in hands-on problem-solving and innovation, further advancing AI applications in retail.
See More
Alamo Group Acquires Petersen Industries for $150 Million
- Acquisition Agreement: Alamo Group has reached a definitive agreement to acquire Petersen Industries for $166.5 million, with the deal expected to close in Q1 2026, aimed at enhancing the company's industrial equipment portfolio and supporting long-term growth.
- Financial Structure: The acquisition will be financed through a combination of cash on hand and credit facility capacity, with an effective purchase price of approximately $150 million, translating to an EBITDA multiple of 7.9x, indicating strong future earnings potential.
- Market Leadership: Petersen is a market leader in grapple truck loaders, primarily serving government agencies involved in bulky waste collection, and the acquisition will bolster Alamo's competitive position in this niche market.
- Strategic Implications: By integrating Petersen's aftermarket parts and service business, Alamo Group not only aims to improve margins but also to add recurring revenue, thereby enhancing overall financial performance and market share.
See More
Alamo Group Increases Quarterly Dividend by 13% to $0.34
- Dividend Increase: Alamo Group has raised its quarterly dividend to $0.34 per share, an increase of $0.04, which underscores the company's commitment to delivering long-term value to shareholders and is likely to attract more investor interest.
- Capital Allocation Strategy: This dividend hike reflects the company's disciplined capital allocation strategy, indicating strong financial resilience amid economic uncertainties, thereby enhancing market confidence in its future performance.
- Payment Schedule: The new dividend will be paid on January 29, 2026, to shareholders of record as of January 16, 2026, ensuring timely returns for investors and further solidifying trust between the company and its shareholders.
- Market Position: As a leading global manufacturer of industrial and vegetation management equipment, Alamo Group's consistent dividend growth not only enhances its market appeal but also reinforces its solid position in the infrastructure maintenance sector.
See More
Alamo Group Increases Quarterly Dividend by 13% to $0.34
- Dividend Increase: Alamo Group has announced a quarterly dividend increase to $0.34 per share, up $0.04 from the previous quarter, reflecting the company's commitment to delivering long-term value to shareholders and expected to boost investor confidence.
- Capital Allocation Strategy: The more than 13% increase in dividends aligns with the company's disciplined capital allocation strategy, demonstrating resilience and sustained profitability amid economic uncertainties.
- Payment Schedule: The new dividend will be paid on January 29, 2026, to shareholders of record as of January 16, 2026, ensuring timely returns for investors and further solidifying the company's relationship with its shareholders.
- Business Context: As a leading global manufacturer of industrial and vegetation management equipment operating 27 plants, Alamo Group's consistent dividend growth reflects its strong market position in infrastructure maintenance and future growth potential.
See More
