Tornado Global Hydrovacs signs $43 million supply agreement with Ditch Witch

CALGARY – Tornado Global Hydrovacs Ltd. announced it has entered into a Product Supply and Development Agreement for the co-development and supply of customized hydrovac trucks with Ditch Witch, a division of The Toro Company.

The Supply Contract contains a commitment for the delivery of several innovative, proprietary hydrovac trucks to the Purchaser that are estimated to generate minimum gross revenue for Tornado in the amount of $43,850,000 during the four-year term.

“This strategic alliance brings together two strong brands with a collective purpose to better serve customers, and meet future demands including the outlook on infrastructure spending and the effect this spending will have on hydrovac demand globally,” stated Brett Newton, CEO of Tornado. “Tornado is thrilled to have co-designed and started to supply an innovative and proprietary hydrovac truck that will be distributed through the Ditch Witch construction equipment network. Combined with our other sales of hydrovac trucks, we expect this relationship to further optimize the utilization of our manufacturing capacity much more rapidly.”

The Supply Contract requires Tornado to co-develop a customized exclusively Ditch Witch branded hydrovac truck, (including the necessary intellectual property for the design and operation of the hydrovac truck) and then supply the customized hydrovac trucks to the Purchaser commencing in fiscal year 2022 and ending in fiscal year 2025, subject to certain customary commercial terms and conditions.

The sale and delivery of the first customized hydrovac truck to the Purchaser is expected to be completed in Q3 2022.

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