About Toromont Industries

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. Segments The company operates through two segments, Equipment Group and CIMCO. Equipment Group The Equipment Group includes Caterpillar Inc. (Caterpillar) dealerships by revenue and geographic territory, in addition to rental operations and material handling and agricultural equipment dealerships. The Equipment Group consists of various businesses, such as Toromont Cat; Battlefield Equipment Rentals; Toromont Material Handling; AgWest Ltd.; SITECH Mid-Canada Ltd.; and Toromont Energy Ltd. Development The company’s MAK distribution territory expanded to include Quebec, the Maritimes and the Eastern Seaboard of the United States from Maine to Virginia. The acquisition also included Hewitt’s material handling business that expanded the company’s presence in the material handling equipment supply business, by adding distribution of products combined with full customer service and support in Ontario and Quebec to operations in Manitoba, Northern Ontario and Newfoundland. The company filed a Form 51-102F4 in respect of the acquisition of the operating assets of Hewitt. Facilities and Principal Products Toromont Cat provides a range of equipment supply and customer service capabilities. The MAK dealership territory stretches from the Great Lakes to the Eastern Seaboard of the United States, from Maine to Virginia. The Caterpillar dealership represents a range of Caterpillar products, including earthmoving and construction equipment, paving machines, mining equipment, industrial and marine applications, lift trucks and power generation. In addition to the sales and service of equipment, operations include the distribution of replacement parts for Caterpillar products and other equipment lines, and the remanufacture and repair of engines and engine components. The Caterpillar dealership operates from 48 locations (including branches, shared locations and on-site facilities at major customer-owned mine sites) across the Dealership Territory. Like Battlefield Equipment Rentals, the Toromont Cat dealership also represents products from other manufacturers in equipment lines not served by Caterpillar, such as Metso and Masaba. Battlefield Equipment Rentals is a single-source supplier of rental equipment, Caterpillar Compact Equipment, new and used equipment sales, specialty tools, building products, safety supplies and safety training programs for construction contractors, tradespeople, plant maintenance contractors and homeowners. With the acquisition of the operating assets of the Hewitt Group, Battlefield Equipment Rentals operates from 71 locations (including branches and shared locations) across Manitoba, Ontario, Quebec, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland and Labrador, including its head office facility in Stoney Creek, Ontario. Battlefield Equipment Rentals sells brand name products and is the authorized distributor for such brands as Caterpillar, Spectra Precision/Trimble, Wacker Neuson, Stihl, Honda, SkyJack, Genie, Husqvarna, Atlas Copco, Bosch, and Gorman-Rupp, as well as others. Battlefield Equipment Rentals also operates Jobsite Industrial Rentals Services, which provides equipment for the plant maintenance, factory and industrial industries, focusing on the electrical, mechanical, welding, millwrighting and rigging trades. Jobsite Industrial Rentals Services operates out of locations in Burlington, Cambridge, Toronto, Sarnia, Trenton and Sudbury, Ontario, and Saint John, New Brunswick. Toromont Material Handling provides products from a number of large lift truck and battery manufacturers, including MCFA, Kalmar, Manitou and Hoppecke targeted to a range of industries, including paper product manufacturers, ports and terminals, automotive parts and components manufacturers, beverage makers and home and hardware retailers. Toromont Material Handling operates from 16 locations (including branches and hared locations) within the Dealership territory. AgWest Ltd. (AgWest) is a dealer of agricultural equipment in the Province of Manitoba. AgWest provides products, including Agco’s Challenger, Fendt and Massey Ferguson lines, Claas combines and building products targeted to agricultural customers. This was complemented by the acquisition of the assets of Canpro Gator Centre, an agricultural spray application equipment dealer representing Agco’s RoGator and TerraGator spray equipment, as well as Raven (Slingshot) technology products. AgWest operates from 6 branches (including one shared location) in Manitoba. SITECH Mid-Canada Ltd. (SITECH) sells and services Trimble GPS machine control and guidance systems, laser survey equipment and provides professional services to the earthmoving and mining segments. SITECH operates from locations in Woodbridge and London, Ontario (under the trade name Silver Top Supply); Trois-Rivières, Quebec; Dartmouth, Nova Scotia; and Winnipeg, Manitoba. Toromont Energy Ltd. (Toromont Energy) develops distributed generation and combined heat and power projects. Its core business is the supply, construction and operation of power plants, using Caterpillar’s power generation technologies. In addition to providing a range of services for power generation projects, Toromont Energy, on a selective basis, participates in project ownership. Toromont Energy is based in Concord, Ontario, and operates plants throughout Ontario that supply energy to hospitals, district energy systems and landfill gas to energy plants. Toromont Energy signed 15-year agreements with the Ontario Power Authority in 2010 regarding the power supplied from the two plants in Sudbury, Ontario. In addition, Toromont Energy provides plant operations services to a number of customers in Ontario. Caterpillar, the company’s major supplier, manufactures a range of equipment and also distributes, through its dealer network, products manufacture for it and sells under the Caterpillar brand name. Seasonality The Equipment Group has a distinct seasonal trend in activity levels. Lower revenues are recorded during the first quarter (year ended December 31, 2020) due to winter shutdowns in the construction industry. The fourth quarter has been the strongest quarter due in part to the timing of customers’ capital investment decisions, delivery of equipment from suppliers for customer-specific orders and conversions of equipment on rent with a purchase option. Customers The Equipment Group’s customer base includes infrastructure contractors, residential and commercial contractors, builders, mining companies, aggregate producers, forestry companies, pulp and paper producers, general contractors, utilities, municipalities, marine companies, manufacturers, waste handling companies, ports and terminals and agricultural enterprises. CIMCO CIMCO engages in the design, engineering, fabrication and installation of industrial and recreational refrigeration systems. Both groups offer comprehensive product support capabilities. CIMCO Refrigeration is a North American supplier of industrial and recreational compression equipment, providing full-service capabilities, including design, engineering, installation and after-market service. Industrial refrigeration applications include the food, dairy, cold storage and beverage segments. Recreational refrigeration applications include artificial ice surfaces for various sporting activities, such as hockey, curling, skating and other unusual ice surfaces. Headquartered in Toronto, Ontario, CIMCO operates from 26 locations (including branches and service depots) across Canada and the United States. Seasonality CIMCO has also had a distinct seasonal trend in results historically, due to the timing of construction activity. Lower revenues are recorded during the first quarter on slower construction schedules due to winter weather. Revenues increase in subsequent quarters as construction schedules ramp up. Customers CIMCO’s customer base primarily consists of companies engaged in all aspects of the food and beverage industry, food and beverage processors and recreational facilities worldwide, but primarily in Canada and the United States. History Toromont Industries Ltd. was founded in 1961.