Snake River Holdings buys Kodiak America

Kodiak America in Burley became part of Snake River Holdings on Sept. 29 in a move that brings this manufacturer of heavy snow removal equipment under the same corporate umbrella as another Burley company: potato equipment company Double L.

“Kodiak is the second-largest snow removal manufacturer in the world,” Snake River Holdings CEO Grant Flaharty told the Idaho Business Review. “It’s a really great product, and Kodiak is an entrepreneurial company that was owned and operated by three generations of the same family.”

Really big snow removal

To say that Kodiak is in the snow removal business might be misleading, because the firm does not make tiny snow blowers that many Idahoans own for their sidewalks. Kodiak makes really big snow removal equipment, the kind used to clear mountain passes and airport runways.

“Kodiak makes a snow blower that’s attached to a giant Caterpillar front-end loader or one with a truck chassis,” Flaharty explained. For an idea of scale, the truck version uses a Cummins diesel that can be up to 1,200 HP for the truck drive train and a second Cummins diesel that can be up to 600 HP to run the snow blower.

Heavy equipment synergy

Kodiak was not originally on Snake River Holdings’ radar as a company to acquire. “Kodiak approached us to help them build some equipment,” Flaharty remarked, commenting that Kodiak was under a crunch because of “a high volume orders” exceeding its current capacity.

In the process of the two firms talking with one another, Snake River Holdings realized the potential for synergy between the two heavy equipment companies and made an offer to buy Kodiak, which was accepted.

Flaharty commented on Kodiak’s entrepreneurial creativity for expanding its product line, since the firm has landed a contract to build two railroad snow blower prototypes for the Chicago Transit Authority.

In the announcement for the Kodiak acquisition, Flaharty said: “The merger of these two exceptional companies creates significant benefits for Kodiak America. This includes the use of the world-class, Burley, Idaho-based Double L manufacturing capacity. As well, we will create dynamic synergy between the two companies with shared engineering innovation and ideas.”

Flaharty remarked further: “The benefits of combined global sourcing will allow us to meet the rapid growth projections of the combined companies. Our team will reduce cycle time, increase overall quality and maximize on-time delivery goals.”

Brek Pilling, president of Kodiak Northwest Inc., expressed his enthusiasm for the merger, stating: “Kodiak is in its third phase of ownership and growth through direct family participation. We are now ready to see Kodiak reach its full, worldwide potential through Snake River Holdings’ purchase. Snake River Holdings will maximize Kodiak’s manufacturing potential and fulfill the need for a significant line of new products.”

Flaharty and Pilling agreed that the combination of these high-growth potential companies, within the Magic Valley of Idaho, will benefit the greater community. As well, the acquisition will enable continued engineering and manufacturing growth in the area.

Double L

Snake River Holdings, also located in Burley, is a newly minted privately-owned firm focused on the large equipment manufacturing sector. Snake River Holdings bought Double L Manufacturing in March.

The March 30 announcement of the purchase stated that Double L “reached a definitive agreement to be acquired by a group of Idaho investors. The strategic investors include Teton Management Group, Pickett Equipment and the Idaho Legacy Fund, all of which are headquartered in Idaho and led by individuals who have experience in the agriculture industry.”

The integration of Double L and Kodiak will be completed by the end of this month. The consolidation will leave a workforce of approximately 150. It will also trim three manufacturing facilities down to two, one in Burley and one in Heyburn just across the river.