By Adriano Marchese
Toromont Industries said it acquired a majority interest in AVL Manufacturing, a maker of power-generation and storage enclosures in Ontario.
The Toronto-based specialized-equipment company said it has taken 60% ownership in AVL, which serves the data-center market across eastern North America.
Toromont has also committed to purchasing the remaining 40% of the company by 2031 conditional on underlying business performance.
Chief Executive Mike McMillan said enclosures for standby and prime power are a part of a growing market segment in the region, which he said includes support for the needs of data centers commissioned by the big-tech industry.
"This acquisition adds complementary capabilities to our product and service offerings, secures supply for our Toromont Power Systems business, and provides the opportunity to expand our market to other regions," McMillan said.
No financial details of the transaction were disclosed but Toromont said the acquisition, while accretive, isn't expected to have an immediate effect on Toromont's combined revenue, earnings or balance sheet.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
February 03, 2025 08:16 ET (13:16 GMT)
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