Cervus Equipment Corp. today announced that it has completed the previously announced acquisition of the business assets of Frontier Peterbilt Sales Ltd., the business of Frontier Collision Center Ltd. and certain properties from Frontier Developments Ltd.
Cervus acquired the net assets for approximately $33 million including $14.4 million for the land and buildings from FDL through a vendor take back mortgage of $13.4 million and $19.6 million in cash. The assets acquired include four Frontier Peterbilt dealerships/branches located in Saskatoon, Regina, Estevan and Lloydminster, Saskatchewan, and a collision repair centre located in Saskatoon, SK. The acquisition includes all of the real property currently occupied by these locations. Over the last three (3) fiscal periods, the operations of FPSL and FCCL reported on average gross revenue of $79.3 million per year.
“The transportation equipment dealership business follows the same operating fundamentals as the agricultural, construction and industrial equipment dealerships business and, as such, complements our existing dealership network,” said Peter Lacey, President and CEO of Cervus. “This acquisition enables Cervus to diversify operationally and geographically and provides a strong platform for future growth.”
The business of FPSL, FCCL will be integrated into Cervus’ Construction and Industrial Equipment segment and will continue to operate under the Frontier Peterbilt Sales and Frontier Collision Center trade names.
Frontier Peterbilt is an award winning exclusive Peterbilt dealership established in 1981 which sells new and used trucks as well as offers premium parts and service to customers throughout Saskatchewan. The Frontier Collision Centre provides a broad range of services including truck and auto repair, detailing and accessory sales.
About Cervus Equipment Corp.
Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships in Western Canada. After the acquisition of assets of FPSL, FCCL and FDL, Cervus will operate through 42 dealership locations in Alberta, Saskatchewan and Manitoba. Cervus holds an approximate 60% equity interest in Agriturf Limited, a New Zealand-based corporation that offers authorized John Deere equipment, parts and service. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick, Nissan and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".
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