Rocky Mountain Plans Aggressive Growth

Rocky Mountain Dealerships (RME) has announced a five-year plan to increase revenue and earning to $1.5 billion by 2023, and it includes expansion into the U.S.

“We have spent the last five years protecting and strengthening our foundations while our industry contracted, and the last three years integrating the 19 acquisitions that drove our revenues to the billion-dollar level,” said President and CEO Garrett Ganden. “Now that the industry has normalized, and after integrating our previous acquisitions, we are now ready to turn our attention to accretive growth armed with a sound integration framework.”

RME anticipates growing revenues from $959 million in 2017 to at least $1.5 billion in 2023 through:

• $200 million in organic growth through RME’s present geographic footprint;

• $200 million in acquired top-line revenue in Canada and the U.S.; and

• $100 million in revenue synergies on assets that are acquired through this plan.

The dealership group also plans to expand into the Western U.S. in areas with healthy crop receipts, a similar crop and equipment profile to the Canadian Prairies, and a healthy balance between crop and livestock production.

RME said it seeks to build a strong management team in the U.S. to support its growth.

RME also recently reported financial results for the quarter ended March 31. Total sales increased 4.6 percent over the same period in 2017 due to a $26.4 million increase in new equipment sales year-over-year. The increase in new equipment sales was offset by decreases in used equipment, parts and service revenues due to a late spring season.

Gross profit increased by 0.7 percent.