Cervus Equipment Corporation announces acquisition of remaining shares of Windmill AG Pty Ltd. and additional Australian dealership
Symbol: CVL (TSX)
CALGARY, March 25, 2014 /CNW/ - Cervus Equipment Corporation ("Cervus" or the "Company") (TSX: CVL) today announced that it has completed the acquisition of the remaining 46.7% interest in Windmill AG Pty Ltd. ("Windmill") that it did not already own. The purchase price of $1,654,290 (AUS$1,627,758 at $1.0163 Canadian per Australian dollar) was paid via the issuance of 67,483 common shares of Cervus at a deemed price of $22.59 per share and $129,840 cash (AUS$127,758 at 1.0163 Canadian per Australian dollar). Cervus also announced that it has acquired Western Farm Service Pty Ltd., a John Deere dealership located in Melbourne for a purchase price of $4,277,300 (AUS$4,205,000), subject to final closing adjustments.
"Cervus established operations in Australia in July of 2012 to pursue opportunities in new markets and we have gradually increased our ownership interest to support successful integration," said Graham Drake, President and CEO of Cervus. "With six wholly-owned stores in Australia, Cervus is establishing itself as a highly-regarded agricultural dealership operator and positioning the Company for further growth in the region."
The common shares will vest and be fully transferred to the vendor on each of the first, second and third anniversaries of the closing date.
In connection with the acquisition, Cervus also assumed a shareholder loan of Windmill in the amount of $3,223,950 (AUS$3,172,242 at $1.0163 Canadian per Australian dollar). The vendor then used $1,524,450 (AUS$1,500,000 at $1.0163 Canadian per Australian dollar) of the proceeds from the repayment of that loan to subscribe for 67,483 common shares of Cervus at a deemed price of $22.59 per share.
Windmill AG Pty Ltd. and Western Farm Service Pty Ltd. are John Deere agricultural dealers operating out of five and one location, respectively, in the state of Victoria, Australia. The average revenue for the six locations over the last three years was approximately $67.3 million. Each dealership offers new and used whole goods, parts, and services.
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 56 dealerships located in Western Canada, New Zealand, and Australia. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Cervus Equipment CorporationFor further information:
Graham Drake - President & CEO
Telephone: (403) 567-2095
Fax: (403) 567-0392
Randy Muth - Chief Financial Officer
Telephone: (403) 567-2097
Fax: (403) 567-0392