Symbol: CVL (TSX)
CALGARY, Aug. 11, 2014 /CNW/ - Cervus Equipment Corp. ("Cervus" or the
"Company") (TSX: CVL) today announced that it has completed its
previously announced acquisition of the business and assets of
Peterbilt of Ontario Inc. ("POI").
"Cervus' successful integration and operation of the transportation
business over the last two years has demonstrated our expertise as a
dealer of business-to-business equipment in various industries," said
Graham Drake, President and CEO of Cervus. "Cervus will continue to
work in partnership with Peterbilt to realize growth opportunities in
Ontario's strong freight market."
Cervus acquired the business and assets of POI for $25.5 million, plus
closing net working capital adjustments expected to approximate $8.9
million, to be finalized based on POI's net tangible assets on the
effective date of the acquisition. The consideration paid on closing
was $25.5 million from available cash and $8.9 million drawn from the
Company's current credit facilities. Over the last three fiscal
periods, POI reported on average gross revenue of approximately $157
million per year.
POI was established more than 33 years ago and each of its 12 dealership
locations sells and services the full line of Peterbilt Trucks,
including road conventional; vocational; and medium-duty pick-up and
About Cervus Equipment Corporation
Cervus acquires and manages authorized agricultural, commercial,
industrial and transportation equipment dealerships with interests in
67 dealership locations 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 Corporation
For 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