Rocky Mountain Dealerships Inc. ("Rocky"), announced that it has completed the previously announced agreement to purchase 100% of the issued and outstanding shares of Camrose Farm Equipment Ltd ("CFE") for $5.7 million cash consideration. CFE is a dealer of both Case IH and New Holland Agriculture equipment operating in Camrose and Killam, Alberta. As previously announced, for its most recent fiscal year, CFE had agriculture-related revenues of approximately $54 million.
Matt Campbell, CEO of Rocky, remarked "Several consecutive quarters of cash generation have enabled Rocky to complete certain key initiatives to generate value for our shareholders, including increasing our quarterly dividend and repurchasing our convertible debentures. We view the acquisition of CFE as yet another positive initiative, as this acquisition was funded entirely with available cash and accordingly we believe it will begin immediately delivering accretive earnings."
Campbell continued, "The acquisition of CFE is significant as it expands our access into the central Alberta agriculture market which continues to offer a strong outlook with a growing economy, solid commodity prices and exceptional growing conditions."
Rocky is one of Canada's largest agriculture and construction equipment dealerships with branches throughout Alberta, Saskatchewan and Manitoba. Rocky sells, rents, and leases new and used construction and agriculture equipment and offers product support, and finance to its customers.
For further information, please contact:
Rocky Mountain Dealerships Inc. Matt Campbell, Chief Executive Officer; Garrett Ganden, Chief Operating Officer #301, 3345 - 8th Street S.E. Calgary, Alberta T2G 3A4 Telephone: (403) 265-7364, Fax (403) 214-5644