Thursday, Toro Co.(TTC) said it entered into a joint venture with TCF Inventory Finance, Inc., an indirect subsidiary of TCF Financial Corp. (TCB) to form Red Iron Acceptance, LLC, in an effort to provide cost-effective source of floor plan and open account financing to distributors and dealers of Toro and Exmark brands in the United States and Canada.
As per the agreement, TCF Commercial Finance Canada, Inc., also would provide floor plan and open account financing to dealers located in Canada. The venture is expected to leverage complementary strengths to the channel partners by offering inventory financing to support their businesses, Toro noted.
Later this year, Red Iron Acceptance, the new entity, would replace Toro Credit Company and a third party financing company, who currently offers financing to Toro and Exmark distributors and dealers. Lawn and garden industry would be the major target.
Red Iron Acceptance's Customer support services would be centered at Toro's Bloomington, Minnesota, headquarters with "back office" operations in TCFIF's offices in Hoffman Estates, Illinois. Tom Evans, would lead the entity as the general manager, while a management committee comprised of four executives from each of The Toro Company and TCFIF would provide executive oversight.
TTC is currently trading at $35.86, down $0.46 or 1.27%, on a volume of 0.83 million shares on the NYSE.
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