Titan Machinery (NASDAQ:TITN) announced today that it has entered into a definitive purchase agreement to acquire certain assets of Fairbanks International and its affiliates. The acquisition includes six dealerships that offer one or more of the Case IH, New Holland agriculture and New Holland Construction brands. These dealerships are located in Grand Island, Kearney, Lexington, Holdrege, Hastings, and North Platte, Nebraska. The acquisition is subject to customary conditions to closing and is expected to close on or around December 31, 2010.
Fairbanks International was started by the Fairbanks family in 1910 and it has been selling equipment for over a century. In 1969, three Fairbanks brothers, David, Loren and Jim, began managing this entity and continue to run the company today. All three brothers plan to continue being an active part of management of the acquired dealerships going forward.
The six dealerships in the Fairbanks International network are well-situated along the I-80 corridor in Nebraska which is some of the most productive agriculture land in the world. Strategically located on top of the Ogallala Aquifer, one of the world’s largest aquifers provides irrigation resources resulting in a concentration of intense agriculture, high yields and diversification through all weather cycles. Fairbanks acquisition marks Titan Machinery’s first agriculture dealerships in Nebraska and complements its construction equipment dealerships in Omaha and Lincoln, Nebraska. In its most recently reported fiscal year ended December 31, 2009, Fairbanks International and its acquired affiliates generated revenues of approximately $85 million.
David Meyer, Titan Machinery’s Chairman and CEO, said, “Strategically, I’m optimistic about the long-term growth opportunities in Nebraska. I have personally known the Fairbanks family for over two decades and I see many similarities in our operations and business philosophies. Fairbanks International have created and implemented leading edge product support best practices that have become a standard in the industry. I am excited to bring this expertise and talented group of employees to be a part of the Titan Machinery Team.”
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