Rocky Mountain Dealerships Inc. (TSX: RME) completes the acquisition of Camrose Farm Equipment Ltd.
CALGARY, July 3, 2012 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky"), announced today that it has completed the previously announced agreement to purchase 100% of the issued and outstanding shares of Camrose Farm Equipment Ltd ("CFE") for $5.7 million cash consideration. CFE is a dealer of both Case IH and New Holland Agriculture equipment operating in Camrose and Killam, Alberta. As previously announced, for its most recent fiscal year, CFE had agriculture-related revenues of approximately $54 million.
Matt Campbell, CEO of Rocky, remarked "Several consecutive quarters of cash generation have enabled Rocky to complete certain key initiatives to generate value for our shareholders, including increasing our quarterly dividend and repurchasing our convertible debentures. We view the acquisition of CFE as yet another positive initiative, as this acquisition was funded entirely with available cash and accordingly we believe it will begin immediately delivering accretive earnings."
Mr. Campbell continued "The acquisition of CFE is significant as it expands our access into the central Alberta agriculture market which continues to offer a strong outlook with a growing economy, solid commodity prices and exceptional growing conditions."
Caution Regarding Forward Looking Statements
This press release contains forward looking statements ("FLS") within the meaning of applicable securities legislation. Examples of FLS in this press release include, but are not limited to, the statement that Rocky believes this acquisition will immediately deliver accretive earnings, and the statement regarding economic outlooks, commodity prices, and growing conditions for the central Alberta region. Although the FLS contained in this press release are based on what management of Rocky believes are reasonable assumptions, Rocky cannot assure investors that actual performance or results will be consistent with these FLS. Rocky's actual results could differ materially from those anticipated in the FLS in this press release as a result of the risk factors set forth in Rocky's Annual Information Form dated March 19, 2012, available on SEDAR at www.sedar.com. These FLS are made as of the date of this document and, except as required by applicable law, Rocky assumes no obligation to update or revise them to reflect new events or circumstances.
Rocky is one of Canada's largest agriculture and construction equipment dealerships with branches throughout Alberta, Saskatchewan and Manitoba. Rocky sells, rents, and leases new and used construction and agriculture equipment and offers product support, and finance to its customers.
Rocky Mountain Dealerships Inc.
Matt Campbell, Chief Executive Officer; or
Garrett Ganden, Chief Operating Officer
#301, 3345 - 8th Street S.E.
Calgary, Alberta T2G 3A4
Telephone: (403) 265-7364, Fax (403) 214-5644