Cervus Equipment Corp. announced that it has completed its previously announced acquisition of the business and assets of Peterbilt of Ontario.
"Cervus’ successful integration and operation of the transportation business over the last two years has demonstrated our expertise as a dealer of business-to-business equipment in various industries,” said Graham Drake, president and CEO of Cervus. “Cervus will continue to work in partnership with Peterbilt to realize growth opportunities in Ontario’s strong freight market.”
Cervus acquired the business and assets of Peterbilt of Ontario for $25.5 million, plus closing net working capital adjustments expected to approximate $8.9 million, to be finalized based on Peterbilt of Ontario’s net tangible assets on the effective date of the acquisition. The consideration paid on closing was $25.5 million from available cash and $8.9 million drawn from the company’s current credit facilities.
Over the last three fiscal periods, Peterbilt of Ontario reported on average gross revenue of approximately $157 million per year. Peterbilt of Ontario was established more than 33 years ago and each of its 12 dealership locations sells and services the full line of Peterbilt Trucks, including road conventional; vocational; and medium-duty pick-up and delivery trucks.