Symbol: CVL (TSX)
CALGARY, Sept. 18, 2014 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced that it has entered into a Definitive Agreement to acquire 100% of the shares of Evergreen Equipment Ltd. ("Evergreen"). Evergreen owns four John Deere dealerships located in Bassano, Brooks, Drumheller and Hanna, Alberta that sell new and used agricultural equipment and offer equipment parts and servicing. Over the last three fiscal periods, Evergreen reported an average gross revenue of more than $87 million per year.
"Signing of this Definitive Agreement demonstrates Cervus' continued opportunities for growth with John Deere in Western Canada," said Graham Drake, President and CEO of Cervus. "We expect the acquisition of these four Alberta locations to be immediately accretive and generate long term value within our Western Canadian operations."
Closing of the transaction is subject to, among other things, the completion of due diligence activities and the receipt of all required regulatory and third party approvals. 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. The final purchase price, which will be subject to certain post-closing adjustments, will be paid in a combination of cash and shares with up to $2.2 million of the purchase price paid in common shares of Cervus. Upon completion of satisfactory due diligence and the receipt of all required regulatory and third party approvals, Cervus anticipates closing of the transaction to occur in October 2014.
About Cervus Equipment Corporation
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 67 dealership locations in 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".
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 acquisition by Cervus of Evergreen and the expectation that the acquisition will be immediately accretive. 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 completion of due diligence activities and the receipt of all required regulatory and third party approvals. Cervus currently anticipates and assumes that it will complete its due diligence without issue and 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. The expectation that the acquisition will be immediately accretive assumes that Evergreen's future financial performance will be similar to or better than its recent historical performance however there is no guarantee that will be the case. The future financial performance of Evergreen, 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 Evergreen'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 Evergreen 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]