Toro Co. (TTC - Free Report) ) has completed the acquisition of Xiamen Xiangfeng Water Saving Equipment Co., Ltd. Financial terms of the transaction were not disclosed.
Headquartered in China, Xiamen Xiangfeng manufactures drip irrigation products, sprinklers, emitters and filters for agriculture, landscaping and green house production. Drip irrigation, also known as micro irrigation, is an irrigation process that saves water and fertilizer by allowing water to drip slowly to the roots of plants through valves, pipes, tubing and emitters.
The acquisition will provide Toro an opportunity to expand its presence in the micro irrigation business in China. Limited water supply and growing demand for food are matters of concern. For this, a proper irrigation system is required. Toro’s worldwide agricultural micro irrigation business will provide high-quality solutions for farmers.
Toro, which belongs to small tools and accessories industry along with Lincoln Electric Holdings Inc. (LECO - Free Report) , Simpson Manufacturing Co., Inc. (SSD - Free Report) and Snap-on Inc. (SNA - Free Report) , recently completed a micro irrigation manufacturing facility in Romania to support the micro irrigation business in Asian and Eastern European regions.
Toro continues to see growth opportunities through the ongoing introduction of innovative products and increased focus on markets like municipal and sports fields. The new underground product portfolio is well positioned to grow in international markets. However, foreign exchange volatility and social and political unrest remain headwinds.
As a worldwide provider of turf and landscape maintenance equipment as well as irrigation solutions, Toro helps its customers to care for golf courses, sports fields, public green spaces, commercial and residential properties, and agricultural fields. The company operates through two segments – Professional and Residential.
Toro currently retains a Zacks Rank #1 (Strong Buy).