Underground compact-equipment maker The Toro Company announced Feb. 15 that it will acquire its major competitor, Charles Machine Works, for $700 million in cash.

Producer of the popular Ditch Witch line of trenchers and horizontal drills as well as Subsite Electronics underground sensor equipment, Charles Machine Works reported a calendar 2018 revenue of approximately $725 million. Based in Perry, Okla., the company traces its roots back over a century and is credited with developing the first service-line trencher in 1949.

The Toro Co. has a similar history and celebrated its centennial in 2014. Producers of underground servicing equipment as well as landscaping and irrigation equipment, Bloomington, Minn.-based Toro Co. reported sales of $2.6 billion in fiscal year 2018.

While Toro Co. has not outlined how it will merge the two businesses, it did say in a press statement that it expects to capitalize on the broad international dealer networks already established through Charles Machine Works’ brands.