BLOOMINGTON, Minn. — Bloomington, Minnesota-based The Toro Company has announced plans to purchase the Oklahoma-based company that manufactures Ditch Witch and other underground construction equipment.

Toro said in a news release Friday that it will pay $700 million in cash for The Charles Machine Works, a privately held company based in Perry, Oklahoma.

The proposed sale is subject to regulatory approval and is expected to close by the end of the third quarter.

Toro chairman and CEO Richard Olson said Charles Machine Works will strengthen Toro's portfolio that includes turf maintenance, snow and ice management, landscaping and construction equipment.