The world’s biggest privately-owned chain of Deere construction and forestry equipment dealerships is set to expand into Deere farm equipment.
Brandt Tractor, the equipment sales arm of the Regina-based Brandt Group, will buy all issued and outstanding common shares of the publicly-traded Cervus Equipment Corp.
Cervus’ holdings today include 22 Deere dealerships in Alberta, Saskatchewan and B.C., 17 Peterbilt dealerships in Ontario and Saskatchewan, eight forklift dealerships in Alberta, Saskatchewan and Manitoba, seven Deere dealerships in Australia and nine in New Zealand. Another Deere dealership is due to open at Penhold, Alta., next year.
Brandt Tractor, meanwhile, operates 56 dealerships across Canada, selling equipment such as skid steers, dozers, excavators and feller bunchers and also handling sales and service for brands such as Ditch Witch, NPK, Hammerhead and Topcon.
Brandt CEO Shaun Semple said the addition of Cervus would see Brandt Tractor shift its dealership chains into three new segments “dedicated to serving the agriculture, transportation and material handling industries.”
Cervus CEO Angela Lekatsas said in the same news release: “As a private company with a committed, well-capitalized and long-term owner, Cervus will be better positioned for the next stage of evolutionary growth for our dealerships.”
“The size and scale of the entity created by the combination of our two companies will allow for increased investment into Cervus for the benefit of our employees and customers.”
Brandt and Cervus said they expect to close the deal in the fourth quarter.
On the same day the agreement was announced, Cervus reported earnings for its best-ever second quarter. Ag equipment revenue was up 10 percent in the quarter, “primarily driven by increased customer demand for new equipment, supported by strong market fundamentals in all our geographies.”
Source: AG Canada