Symbol: CVL (TSX)
CALGARY, Dec. 10, 2014 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced that it has entered into a Definitive Agreement to acquire the assets of Deer-Country Equipment (1996) Ltd. ("Deer-Country"). Deer-Country owns two John Deere dealerships located in High River and Vulcan, Alberta that sell new and used John Deere agricultural equipment and offer equipment parts and servicing.
"As with the recently completed Evergreen acquisition, signing of this Definitive Agreement represents a strategic opportunity for Cervus to expand our Western Canadian presence in areas adjacent to our established John Deere locations," said Graham Drake, President and CEO of Cervus. "We expect the acquisition of these two Alberta locations to generate long term value within our Western Canadian operations."
The purchase includes the operating assets, inventory, working capital, and the land and building at the Vulcan location. The purchase will be funded via the issuance of $750,000 worth of common shares of Cervus, with the remainder paid in cash drawn from existing credit facilities.
About Cervus Equipment Corporation
Cervus acquires and operates authorized agricultural, commercial, industrial and transportation equipment dealerships. The company has interests in 75 dealerships in Canada, New Zealand and Australia, employing more than 1,700 people. 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. Cervus Equipment went public in 2000, and since 2003, the common shares of Cervus Equipment have been 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. 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. The future financial performance of Deer-Country, and Cervus as a whole, will be subject to various risks and uncertainties which may cause their actual performance and financial results to differ materially from any projections of future performance or results expressed or implied by such forward looking information. These risks and uncertainties include the risks identified under the heading "Risk Factors – Risks Related to the Business" in the 2013 Annual Information Form of Cervus Equipment Corporation dated March 11, 2014 available electronically at www.sedar.com under Cervus' profile including but not limited to Deer-Country's and Cervus' reliance on key manufacturers for the delivery of products, their respective dependence on the strength of sales to the agricultural sector, the seasonal and cyclical nature of the business, workforce availability and acquisition related risks such as effective and timely integration of Deer-Country into Cervus' business operations. 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. You 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 Corporation
For further information: Graham Drake - President & CEO, Telephone: (403) 567-2095, Fax: (403) 567-0392, Email: [email protected]; Randy Muth - Chief Financial Officer, Telephone: (403) 567-2097, Fax: (403) 567-0392, Email: [email protected]