Blount Purchases SP Companies

Blount International, Inc., Portland, OR, a manufacturer and distributor of replacement parts, equipment, and accessories for the global forestry, lawn and garden, and construction industries, announced the acquisition of SP Companies, Inc. and its wholly-owned subsidiary, SpeeCo, Incorporated based in Golden, CO. SpeeCo, is a manufacturer primarily of log splitters, post-hole diggers, tractor three-point linkage parts and equipment, and farm accessories.

Blount purchased all of the stock of SpeeCo for approximately $90 million in cash and funded the acquisition utilizing its new credit facility.

“Blount’s acquisition of SpeeCo will provide an immediate, substantial entry into products and markets that complement our existing businesses,” said Josh Collins, Blount’s Chairman and Chief Executive Officer. “SpeeCo’s well known and respected farm and ranch brands and experienced management team, coupled with our global distribution network, provide attractive growth opportunities. We intend to utilize fully the strengths of each company to realize the benefits of this acquisition.”

In the twelve months ended July 31, 2010, SpeeCo’s revenue was $77.1 million, operating income was $8.2 million, and adjusted earnings before interest, taxes, depreciation, and amortization amounted to $13.1 million. Revenue has grown from approximately $53.3 million in 2006 to current levels, representing a compound annual growth rate of approximately 10.8%.

Under the corporate structure going forward, Paul Valas, President and Chief Executive Officer of SpeeCo, will report to Collins and join the Blount senior leadership team.

“We are excited about Blount’s acquisition of SpeeCo and look forward to continuing our history of providing industry-leading, high quality products to our customers,” Valas said. “Blount brings a wealth of resources to SpeeCo, particularly a global distribution network, which will help drive our continued growth.”