08:55 AM EST, 02/03/2025 (MT Newswires) -- Toromont Industries ( TMTNF ) said Monday that it acquired a 60% stake in AVL Manufacturing, a producer of power generation and storage enclosures based in Ontario.

Toromont said it will fund the acquisition using cash and shares.

The company committed to purchasing the remaining 40% stake in AVL at agreed upon dates through to 2031 based upon underlying business performance.

Toromont said the acquisition, while accretive, is not expected to have an overall material impact on its combined revenue, earnings or balance sheet in the near-term.

"Enclosures for standby and prime power are part of an important and growing market segment in North America, which includes supporting leading technology companies data centre needs," said Mike McMillan, Toromont's president and CEO.

"This acquisition adds complementary capabilities to our product and service offerings, secures supply for our Toromont Power Systems business, and provides the opportunity to expand our market to other regions," McMillan added.

Toromont's share price fell 2.9% on Friday to $115.89 on the TSX.