Rocky Mountain Dealerships Inc. Announces The Closing Of Initial Public Offering And Completion Of Acquisitions


    CALGARY, Dec. 20 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky
Mountain" or the "Corporation") announced today the successful completion of
its initial public offering of 6,500,000 common shares ("Common Shares") of
the Corporation, at a price of $10.00 per Common Share for total gross
proceeds of $65,000,000 (the "Offering"). The Offering was underwritten by a
syndicate of underwriters led by RBC Capital Markets and included BMO Capital
Markets, Scotia Capital Inc., Blackmont Capital Inc. and HSBC Securities
(Canada) Inc. (collectively, the "Underwriters"). The Corporation has also
granted to the Underwriters an over-allotment option to purchase up to an
additional 975,000 Common Shares at $10.00 per Common Share for gross proceeds
of $9,750,000, which expires 30 days following closing of the Offering.
    The net proceeds of the Offering were used by the Corporation, in part,
to acquire all of the issued and outstanding shares of Hammer Equipment Sales
Limited ("Hammer Equipment") and Hi-Way Service (Medicine Hat) Inc. ("HWMH"),
including HWMH's subsidiaries, Hi-Way Service (High River) Inc. ("HWHR") and
Hi-Way Service Leasing Inc. ("HWL") (collectively, HWMH, HWHR and HWL are
"Hi-Way Service"). Hammer Equipment is an independent dealer of construction
equipment with assigned dealership territories covering most of Alberta and
reaching into Saskatchewan, British Columbia, the Northwest Territories and
Nunavut. Hi-Way Service is an independent dealer of agricultural and
construction equipment with assigned dealership territories throughout
southern Alberta.
    Upon closing of the Offering, Matt Campbell, Rocky Mountain's CEO
commented, "This transaction brings together two exceptional businesses to
create a powerful Alberta based, heavy equipment dealership group. The
combination of Hammer Equipment and Hi-Way Service provides a comprehensive
Alberta footprint in the agriculture and construction sectors, that will
enable us to deliver even better service to all of our customers. We are
looking forward to capitalizing on the strengths of both organizations, and
excited by our future growth opportunities within Alberta and other markets."
    The Common Shares will commence trading today on the Toronto Stock
Exchange under the symbol "RME".

    About Rocky Mountain:

    Through the combination of the Hammer Equipment and Hi-Way Service
businesses, Rocky Mountain represents one of Alberta's largest agriculture and
construction equipment dealerships with 13 dealership branches, revenues of
$290 million, and 400 employees located throughout Alberta. Rocky Mountain
sells, rents and leases new and used construction and agriculture equipment,
including the Case Construction and Case IH Agriculture brands, as well as
offering product support and finance and insurance products to its customers.

    %SEDAR: 00026106E

For further information:

For further information: Matt Campbell, Chief Executive Officer, (403)

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