Symbol: CVL (TSX)
CALGARY, July 3, 2012 /CNW/ - Cervus Equipment Corporation ("Cervus") (TSX: CVL) today announced that it has acquired 30 per cent of the shares in Windmill AG Pty Ltd ("Windmill"), a John Deere agriculture dealer located in Australia, and a 45 per cent interest in PPJ Investment Ltd ("PPJ"), a real estate holding company, also located in Australia.
Cervus acquired 100 per cent of the shares PW Thomas Investments Pty Ltd held in Windmill, representing 30 per cent of the outstanding shares of Windmill, for approximately $2.7 million, and a 45 per cent interest in PPJ for nominal consideration. The assets held by Windmill and PPJ include four John Deere agricultural equipment dealerships located in Hamilton, Terang, Leongatha and Ballarat, and the property currently occupied by the Hamilton, Leongatha and Terang dealerships. The acquisition was conducted through Cervus' newly-incorporated Australian holding company, Cervus Equipment Australia Pty Ltd.
"Australia's thriving agricultural industry makes it a particularly attractive area for Cervus to expand its operations," said Graham Drake, President and CEO of Cervus Equipment Corporation. "The Australian agricultural industry is similar to that of Western Canada in terms of scale, so we are confident in our ability to operate in that market."
Windmill is an agricultural machinery dealership that primarily sells John Deere equipment, with average revenue of approximately $56 million over the last three years. Each dealership offers new and used whole goods, parts, and service. Windmill owns the property currently occupied by its Terang branch, and leases the property currently occupied by its Leongatha and Hamilton branches from PPJ under rental agreements. The property currently occupied by the Ballarat dealership is owned by a third party.
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships in Western Canada through 35 wholly owned dealership locations and a 20 per cent interest in 7 dealership locations, primarily in Alberta, Saskatchewan and Manitoba. Cervus holds an approximate 60 per cent equity interest in Agriturf Limited, a New Zealand-based corporation that offers authorized John Deere equipment, parts and service in the Manawatu, Rotorua, Hawke's Bay and Taranaki regions. Cervus also holds an approximate 30 per cent equity interest in Windmill Ag Pty Ltd, an Australian-based agricultural machinery dealership that offers John Deere equipment, parts, and service in the Hamilton, Terang, Leongatha and Ballarat regions. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick, Nissan 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".
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 average gross revenue of Windmill. 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. Forward-looking information is based on various assumptions. Those assumptions are based on information currently available to Cervus, including the historic performance of their businesses and current business and economic trends. You are cautioned that the preceding list of assumptions is not exhaustive. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Cervus' actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward looking information. These risks and uncertainties may include but are not limited to the risks identified in the 2011 Annual Information Form of Cervus Equipment Corporation, under the heading "Risk Factors". 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.
For further information:
Graham Drake - CEO
of Cervus Equipment Corporation
Telephone: (403) 567-2095
Fax: (403) 567-0392
Randy Muth - Chief Financial Officer
of Cervus Equipment Corporation
Telephone: (403) 567-2097
Fax: (403) 567-0392