(Stock Symbol "RME" - TSX)
CALGARY, Feb. 12 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky Mountain" or the "Company") (TSX: RME), a leading agriculture and construction equipment dealer, announced today that it has entered into an agreement to purchase all of the outstanding shares of Roydale New Holland Inc. ("Roydale"), an agriculture dealership in Red Deer, Alberta. This acquisition is anticipated to close on March 1, 2010.
Roydale represents the New Holland agriculture brand and also carries Seed Hawk and Husqvarna equipment. In its most recent fiscal year, Roydale reported approximate revenues of $22 million. This acquisition is the first New Holland agriculture dealership for Rocky Mountain and will be the cornerstone for expansion in a new agriculture product line. Based in Central Alberta, Roydale covers a market area north of our current agriculture locations and opens a new customer base to the Rocky Mountain group. Roydale represents the 12th location added to Rocky Mountain since the initial public offering in December 2007. The former owners of Roydale will stay on with Rocky Mountain as managers. "They are young, energetic, and are intimate with the New Holland product line. That's an exciting combination which augments the strategy of Rocky Mountain." commented Matt Campbell, Chief Executive Officer.
Rocky Mountain represents one of Canada's largest agriculture and construction equipment dealerships and with this acquisition will operate a total of 25 dealership branches throughout Alberta, Saskatchewan and Manitoba. Rocky Mountain sells, rents and leases new and used equipment, including Case Construction, Case IH agriculture and New Holland agriculture, Terex and Dynapac brands, as well as offering product support and finance and insurance products to its customers.
FORWARD LOOKING STATEMENTS
The information with respect to Rocky Mountain contained herein, contains forward-looking statements relating to the completion of the proposed acquisition. These forward-looking statements are based on the assumption that this acquisition will close, however, there is a risk that such transaction will not be completed. As a result, Rocky Mountain's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur.
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: firstname.lastname@example.org