Genstar Buys Lawn-Equipment Maker Woods for $100 Million

San Francisco-based Genstar said Friday it invested in the privately held Woods, of Oregon, Ill., together with Fred Korndorf, who was named its new chairman and chief executive, and other company management.

Genstar also assumed about $55 million in debt.

Korndorf, the former operations chief at construction and farm-equipment maker Deere & Co., serves on Genstar's strategic advisory board. He replaces former Chief Executive Richard Olson, who headed the company for about three years.

The deal included a debt equity line of about $95.3 million, $55 million of which has been drawn. The rest of the line remains available to the company.

Genstar acquired Woods from a group of debt investment houses including Greenwich Street Capital Partners, Wayland Advisors Inc. and Ares Management.

That group took over Woods' debt from Madison Dearborn Partners in 2001. Madison Dearborn took control after a failed merger with Alamo Group Inc. that left Woods unable to meet interest payments on corporate debt.

Since then, Greenwich, Wayland and Ares have restructured the company, eliminating 250 jobs and temporarily shutting down some of its plants.

Woods now has annual revenue of over $200 million and is profitable, according to Genstar Partner Rick Hoskins.