Go-Forward Strategy will focus on Agriculture, Transportation and Material Handling Operations
CALGARY, Feb. 26, 2018 /CNW/ - Cervus Equipment Corporation ("Cervus" or the "Company") (TSX: CERV) today announced it has entered into a definitive agreement to sell its construction dealership group, composed of four dealership locations in Calgary, Red Deer, Edmonton and Fort McMurray, Alberta. The dealerships represent the construction brands Bobcat, CMI and JCB.
"Due to the dedication of our employees, our construction group has weathered the recent economic cycle, and is performing well. However, a key part of Cervus' strategy is to grow the scale and footprint of our dealership groups, and over the long run we see stronger opportunities for expansion in our other segments, including material handling," said Graham Drake, President and CEO of Cervus. "I am pleased that the new owner Calmont Equipment Ltd. ("Calmont") shares our values in serving customers and partnering with the manufacturer. Most importantly, Calmont places high value on people, and is eager for our construction people to join their team and continue to drive the business forward together."
The transaction price is in excess of Cervus' carrying value and includes the land and building at the Fort McMurray construction dealership. Closing of the transaction is subject to the receipt of all required regulatory and third party approvals and, assuming that all conditions precedent can be satisfied, is currently anticipated to occur in the next 60 days.
About Cervus Equipment Corporation
Cervus acquires and operates authorized agricultural, transportation and materials handling equipment dealerships. On closing, the Company will have interests in 60 dealerships in Canada, New Zealand, and Australia, employing more than 1,500 people. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Peterbilt transportation equipment; and Clark, Sellick and Doosan material handling equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CERV".
Forward Looking Information
This press release contains certain forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes forward-looking information relating to the closing of the sale by Cervus of its four Alberta Bobcat dealerships. Forward-looking information is not a guarantee of future performance and involves a number of assumptions and a number of risks and uncertainties some of which are described herein. As stated earlier, closing of the transaction is subject to, among other things, the receipt of all required regulatory and third party approvals. Cervus currently anticipates and assumes that it will be able to obtain all required regulatory and third party approvals within a commercially reasonable time. However, there can be no assurance that these conditions precedent, or any other conditions precedent, will be satisfied. Further, there can be no assurance that the proposed transaction will be completed as proposed or at all. Cervus believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Investors are cautioned that the preceding list of assumptions and risks is not exhaustive. Any forward-looking information is made as of the date hereof and, except as required by law, Cervus assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Cervus Equipment Corp.