Symbol: CVL (TSX)
CALGARY, July 2, 2014 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced that it has entered into a Definitive Agreement to acquire the business and assets of Peterbilt of Ontario Inc. ("POI") for a purchase price of approximately $25.5 million.
"Cervus strives to be an outstanding dealer of trusted and reliable brands, and we grow our business in partnership with strong manufacturers such as Peterbilt," said Graham Drake, President and CEO of Cervus. "This acquisition extends our relationship with Peterbilt and expands our transportation business into the largest freight market in Canada."
Under the terms of the Definitive Agreement, Cervus will acquire the business and assets of POI for approximately $25.5 million, comprised of $20.0 million in cash and $5.5 million in cash drawn from its current credit facilities, before closing net working capital adjustments.
Closing of the transaction is subject to, among other things, the completion of due diligence activities, lender approval, 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. Upon completion of satisfactory due diligence, lender approval, and the receipt of all required regulatory and third party approvals, Cervus anticipates closing of the transaction to occur on or about July 21, 2014.
POI was established more than 33 years ago and currently operates 12 dealership locations across Ontario. Each dealership sells and services the full line of Peterbilt Trucks, including road conventional; vocational; and medium-duty pick-up and delivery trucks. Over the last three fiscal periods, POI reported on average gross revenue of approximately $157 million per year.
About Cervus Equipment Corporation
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 56 dealership locations in Western 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 POI. 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 2012 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.
SOURCE: Cervus Equipment Corporation
For further information:
Graham Drake - President & CEO
Telephone: (403) 567-2095
Fax: (403) 567-0392
Randy Muth - Chief Financial Officer
Telephone: (403) 567-2097
Fax: (403) 567-0392