Cervus Equipment ("Cervus") (TSX: CVL) today announced that it has signed a non-binding letter of intent (LOI) that sets forth the basic preliminary terms of Cervus’ purchase of a minority interest in Windmill Agricultural Unit Trust (“Windmill”). It is proposed that Cervus will acquire a 30% interest in the net operating assets of Windmill, including the real property currently occupied and owned by Windmill, following negotiations regarding the specific assets to be purchased, and the amounts to be paid by Cervus.
“Cervus aims to grow sustainably and expand its operations through the diligent acquisition of complementary businesses,” said Graham Drake, president and CEO of Cervus Equipment Corporation. “The signing of this LOI represents an opportunity to expand our market reach to Australia, a region with a booming agricultural market.”
The assets under consideration include four John Deere agricultural equipment dealerships in Hamilton, Terang, Leongatha South and Ballarat.
The purchase is subject to, among other things, the negotiation and execution of a definitive binding agreement, approval of the board of directors of Cervus, the completion of due diligence activities, and the successful conversion of Windmill to a corporation. 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. Cervus anticipates closing of the proposed transaction in the third quarter of 2012, assuming all agreements and approvals are in place.
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships in Western Canada through 35 dealership locations primarily in Alberta, Saskatchewan and Manitoba. Cervus holds an approximate 60% equity interest in Agriturf Limited, a New Zealand-?based corporation that offers authorized John Deere equipment, parts and service in the Manawatu, Rotorua, Hawke’s Bay and Taranaki regions. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick, Nissan 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".
For further information, please contact:
Graham Drake – CEO of Cervus Equipment Corporation Telephone: (403) 567-2095 Fax: (403) 567-0392 Email: email@example.com
Randy Muth – Chief Financial Officer of Cervus Equipment Corporation Telephone: (403) 567-2097 Fax: (403) 567-0392 Email: firstname.lastname@example.org