Toro to pay $200M for Canadian manufacturer of vacuum excavation trucks

Bloomington’s Toro is investing further in the underground construction market, announcing a deal to acquire Calgary-based Tornado Infrastructure Equipment for about $200 million.

Founded in 1984, Tornado makes vacuum excavation trucks used for projects in underground construction, utilities and power transmission.

The trucks help in installing or repairing underground utilities. They use water or compressed air to safely loosen debris and then a powerful vacuum to excavate loose debris or a slurry of material.

In 2019, Toro expanded in the underground construction market with the $700 million acquisition of Oklahoma-based Charles Machine Works.

Charles Machine makes the Ditch Witch brand of underground construction equipment, including towable vacuum excavation machines and trucks. In 2022, it partnered with Tornado on Ditch Witch-branded hydro-vac trucks.

A public company that trades on the TSX Venture Exchange in Calgary, Tornado earned $7.8 million during the past four quarters on revenue of $107 million.

“This acquisition builds on the momentum in our professional segment, which represented nearly 80 percent of our fiscal 2024 new sales, and expands our underground construction product lineup,” Rick Olson, Toro’s chair and CEO, said in a news release.

Tornado’s revenues have risen sharply. Annual revenue grew more than 30% in 2024 and 130% in the past two years, with the Ditch Witch partnership being a key factor.

The companies expect the deal to close in the first quarter of 2026. Toro plans to keep the Tornado brand and make it a division of the company’s underground and specialty construction group.

Tornado has approximately 300 employees and manufacturing operations in the Alberta cities of Red Deer and Nisku. Management and employees of the company are expected to make the transition to Toro.

“This acquisition will help expand both our geographical footprint and product range to better serve customers facing complex projects in energy, power transmission and water infrastructure,” Peter Moeller, Toro’s group vice president of underground and specialty construction, said in a news release.