Rocky Mountain Dealerships, a leading Canadian network of full service agriculture and construction equipment dealerships, announced it has entered into an agreement to purchase certain assets from Wardale Equipment.
Wardale is 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 ("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.
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