(Stock Symbol "RME" - TSX) Issued: 17,963,540 shares
CALGARY, June 3 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky Mountain" or the "Company"), a leading Canadian network of full service agriculture and construction equipment dealerships, announced today that it has entered into an agreement to purchase certain assets from Wardale Equipment (1998) Ltd. ("Wardale"), a Case IH agriculture dealership with locations in Yorkton, Langenburg and Preeceville, Saskatchewan. The agreement contemplates consideration of cash and the issuance of 292,643 common shares of Rocky Mountain.
Wardale represents Case IH agriculture and also carries, Seed Hawk, Degelman and Brandt equipment brands. Wardale completed its most recent fiscal year ended November 30, 2009, with top-line revenues of approximately $39.0 million. Wardale's operations are contiguous to the existing locations of Miller Equipment Ltd. ("Miller"), a wholly owned subsidiary of Rocky Mountain.
Commenting on the announcement, Matt Campbell, Chairman and Chief Executive Officer of Rocky Mountain, said "This acquisition will bring solid management, excellent revenue and a solid platform for expansion in Saskatchewan. The joining of Wardale will enhance our synergies in the Miller group as this will bring the total number of locations in the Miller group to 11 branches."
Upon completion of the closing of the acquisition, which is anticipated to be on or about June 7, 2010, these new locations will bring the total to 16 locations added to Rocky Mountain since the initial public offering in December 2007 and will bring the Company's total number of branch locations to 29.
About Rocky Mountain
Rocky Mountain represents one of Canada's largest agriculture and construction equipment dealerships and with this acquisition will have a total of 29 dealership branches throughout Alberta, Saskatchewan and Manitoba. Rocky Mountain sells, rents, and leases new and used construction and agriculture equipment, including the Case Construction, Case IH agriculture and New Holland brands, as well as offering product support and finance and insurance products to its customers. In addition, Rocky Mountain also distributes equipment from a number of other manufacturers, including but not limited to Terex, Dynapac, Kawasaki, Leeboy, Bourgault, and Kubota.
FORWARD LOOKING INFORMATION
This press release contains certain statements or disclosures relating to the Company that are based on the expectations of its management as well as assumptions made by and information currently available to the Company which may constitute forward-looking information under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that the Company anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information can be identified by terms such as "forecast", "future", "may", "will", "expect", "anticipate", "believe", "potential", "enable", "plan", "continue", "contemplate", "pro-forma", or other comparable terminology.
In particular this press release states that the Company has entered into a purchase agreement with respect to the assets of Wardale and that this acquisition will bring solid management excellent revenue and a solid platform for expansion in Saskatchewan. The foregoing assumes that all conditions pertaining to the purchase will be met and that the purchase will ultimately be completed. There is a risk that the purchase may not ultimately close.
As such, many factors could cause the performance or achievement of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.
Additional information on Rocky Mountain is available on our website at www.rockymtn.com and on SEDAR at www.sedar.com.
SOURCE Rocky Mountain Dealerships Inc.
For further information: For further information: Rocky Mountain Dealerships Inc., M.C. (Matt) Campbell, Chairman and Chief Executive Officer; Brian Taschuk, Chief Operating Officer; or Garrett Ganden, Chief Financial Officer, 828 - 46th Avenue S.E., Calgary, Alberta, T2G 2A6, Telephone: (403) 243-8600, Fax (403) 243-2264; Investor Relations, Renmark Financial Communications Inc., John Boidman, Vice President, Telephone: (514) 939-3989, Email: email@example.com