Titan Machinery Inc. (NASDAQ:TITN) announced today that it has entered into a definitive purchase agreement to acquire ABC Rental, an independent rental yard company. The acquisition consists of four rental equipment locations in Missoula, Bozeman, and Big Sky, Montana, and Williston, North Dakota. The locations in Missoula, Williston and Bozeman will consolidate with the Titan Machinery existing Case CE dealerships in their respective markets; leveraging the synergies of both companies. The acquisition is subject to customary conditions to closing and is expected to close on or around April 1, 2011.
ABC Rental has been in business for over 40 years and has grown into one of the leading rental equipment companies in Montana. Roland Schumacher, the owner of ABC Rental, is very experienced in the industry and has tremendous rental operations expertise. Mr. Schumacher will remain with the company upon the closing of the acquisition.
With locations in southwest Montana as well as western North Dakota, these rental locations are well-positioned to benefit from the increased activity of the surrounding oil, coal and natural gas exploration and extraction in Montana, North and South Dakota as well as Wyoming. In its most recently reported fiscal year ended December 31, 2010, ABC Rental generated revenues of $5.5 million.
David Meyer, Titan Machinery's Chairman and CEO, said, "We are excited about our expansion into the construction rental business with the acquisition of ABC Rental. The timing of acquisitions coincides with increased rental demand activity in the industry. Roland Schumacher and his team bring an added rental expertise to the Titan Machinery operating model. We have been preparing for the right opportunity to expand our rental model and with ABC Rental as part of the organization the proper growth platform is now in place in this area of our business."
About Titan Machinery Inc.
Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, is a multi-unit business with mature locations and newly acquired locations. The Company owns and operates a network of full-service agricultural and construction equipment stores in the United States. Upon closing of the ABC Rental acquisition and consolidation of the three previously mentioned locations, the Titan Machinery network will consist of 81 dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska and Wyoming, including two outlet stores, representing one or more of the CNH Brands (NYSE:CNH), including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, Kobelco and CNH Capital. Additional information about Titan Machinery Inc. can be found at www.titanmachinery.com.