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
Additional information on Rocky is available at www.rockymtn.com and on SEDAR at www.sedar.com.
SOURCE Rocky Mountain Dealerships Inc.
For further information:
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