Cervus Equipment announced that it has entered into a Definitive Agreement to acquire 100% of the shares of Evergreen Equipment. Evergreen owns four John Deere dealerships located in Bassano, Brooks, Drumheller and Hanna, Alberta that sell new and used agricultural equipment and offer equipment parts and servicing. Over the last three fiscal periods, Evergreen reported an average gross revenue of more than $87 million per year.
“Signing of this Definitive Agreement demonstrates Cervus’ continued opportunities for growth with John Deere in Western Canada,” said Graham Drake, president and CEO of Cervus. “We expect the acquisition of these four Alberta locations to be immediately accretive and generate long term value within our Western Canadian operations.”
Closing of the transaction is subject to, among other things, the completion of due diligence activities and the receipt of all required regulatory and third party approvals. There can be no assurance that these conditions precedent, or any other conditions precedent, will be satisfied. Further, there can be no assurance that the proposed transaction will be completed as proposed or at all. The final purchase price, which will be subject to certain post closing adjustments, will be paid in a combination of cash and shares with up to $2.2 million of the purchase price paid in common shares of Cervus. Upon completion of satisfactory due diligence and the receipt of all required regulatory and third party approvals, Cervus anticipates closing of the transaction to occur in October 2014.
About Cervus Equipment Corp.
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 67 dealership locations in Canada, New Zealand, and Australia. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL."