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RSSCervus Equipment Announces Intent to Acquire Interest in Maple Farm Equipment
Calgary, Alberta CANADA — November 2, 2009 /FSC/ — Cervus Equipment Corp. has announce that it has entered into a non-binding letter of intent to acquire a 20% partnership interest in Maple Farm Equipment Partnership ("Maple Farm Equipment"), which carries on the business, through its subsidiaries, of offering John Deere equipment, parts and service in the Province of Saskatchewan.
In consideration for the Partnership Interest, Cervus proposes to combine the business and operations of its Moosomin, Saskatchewan and Russell, Manitoba dealerships with Maple Farm Equipment. The average R12 revenue of the two Cervus dealerships for the last two years to July 31st was approximately $29 million. The average revenue of Maple Farms Equipment for the same period was approximately $75 million.
The obligations of Cervus and Maple Farm Equipment to complete the transactions contemplated in the letter of intent will be subject to, among other things, the satisfactory completion of due diligence by each party on the other, the negotiation and execution of definitive documentation and the receipt of required third party consents and approvals including, but not limited to, the consent of each party’s lenders and the approval of John Deere. Assuming all of each party’s conditions are satisfied, Cervus expects the acquisition to close on or about December 31, 2009 or January 1, 2010.
About Cervus
Cervus acquires and manages authorized equipment dealerships in Western Canada. The partnership presently operates 17 John Deere dealerships in Alberta, Saskatchewan and Manitoba and 5 construction equipment dealerships in Alberta that sell Bobcat and JCB equipment. The common shares of Cervus are listed on the TSX Venture Exchange and trade under the symbol "CVL".
Cervus acquires and manages authorized equipment dealerships in Western Canada. The partnership presently operates 17 John Deere dealerships in Alberta, Saskatchewan and Manitoba and 5 construction equipment dealerships in Alberta that sell Bobcat and JCB equipment. The common shares of Cervus are listed on the TSX Venture Exchange and trade under the symbol "CVL".
