Infrastructure and agricultural equipment manufacturer Alamo Group Inc. (NYSE: ALG) has acquired Econ Engineering Group Limited, a leading UK-based manufacturer of roadway maintenance trucks and specialized equipment, for £120 million (approximately $158.7 million) in cash, subject to customary closing adjustments.
Following the transaction, Econ joins Alamo Group’s Industrial Equipment Division. Founded in 1969 and headquartered in Ripon, North Yorkshire, Econ manufactures year-round road maintenance equipment—including gritters, de-icing vehicles, and road patching machinery—while operating a rental fleet of approximately 1,300 vocational trucks alongside aftermarket support across the UK.
For its fiscal year ended March 31, 2026, Econ generated approximately $88 million in net sales and $38.5 million in Adjusted EBITDA.
Key Deal Structure & Strategic Highlights:
- Portfolio Expansion: The deal strengthens Alamo Group’s presence in the UK and enhances its specialized industrial equipment portfolio supporting essential public infrastructure.
- Business Model Integration: Combines Econ’s manufacturing operations, extensive 1,300-vehicle rental fleet, and high-margin aftermarket services with Alamo’s global scale.
- Target Markets: Econ primarily serves UK local authorities, government agencies, and infrastructure maintenance contractors.
“Econ is a strong addition to Alamo Group and advances our strategy to expand our Industrial Equipment portfolio,” said Robert Hureau, Chief Executive Officer of Alamo Group Inc. “Its leading market position, differentiated products, and resilient end-markets make Econ a great fit with our portfolio.”
“We are pleased to join Alamo Group and believe the combination provides an excellent foundation for the continued development of Econ,” added Jonathan Lupton, Managing Director of Econ Engineering.
