Rocky Mountain Dealerships Inc. (TSX:RME) announced that it has purchased 100% of the outstanding shares of holding companies owning Allen's Agrocentre Ltd, a Case IH agriculture dealership in Oyen, Alberta, and Gateway Farm Equipment Ltd ("Gateway"), a Case IH agriculture dealership in Grande Prairie, Alberta.
RME issued 20,000 common shares of Rocky Mountain as part of the transaction. Allen's will operate as a branch location of Hi-Way Service Ltd., a wholly owned subsidiary of Rocky Mountain.
In the fiscal year ended October 31, 2009, Allen's had top-line revenues of approximately $5.8 million. This location completes Rocky Mountain's coverage in the area between its Drumheller branch and the Saskatchewan border giving customers continuous support across south central Alberta.
Commenting on the acquisition, Matt Campbell, chairman and CEO of Rocky Mountain, said "This acquisition will open up new markets for Rocky, particularly in used equipment, and allows us to continue expansion north and east of our current trading area. The management of Allen's will continue to operate this location for Rocky adding continuity and management depth."
In the Gateway transaction, RME issued 55,000 common shares of Rocky Mountain as part of the transaction. Gateway will also operate as a branch location of Hi-Way Service Ltd., a wholly owned subsidiary of Rocky Mountain.
In its most recent fiscal year ended March 31, 2010, Gateway had top-line revenues of approximately $12.3 million. The company intends, over the next 12 months, to combine the Gateway location with its existing Hi-Way construction equipment location in Grande Prairie, providing the scale and support needed to serve the northern Alberta market.
Commenting on the acquisition, Matt Campbell, Chairman and Chief Executive Officer of Rocky Mountain, said "The acquisition of Gateway gives us access to the northern Alberta agricultural community and combined with our Case construction business in Grande Prairie, we can be a dominant player in the region."
Including its 2 newest acquisitions, 18 locations have been added to Rocky Mountain since the initial public offering in December 2007 and bringing the company's total number of branches to 31.
Rocky Mountain represents one of Canada's largest agriculture and construction equipment dealerships with a total of 31 dealership branches throughout Alberta, Saskatchewan and Manitoba. Rocky Mountain sells, rents, and leases new and used construction and agriculture equipment as well as offering product support and finance and insurance products to its customers.