Titan Machinery Inc. announced today that it has entered into a definitive agreement with VAIT D.o.o. to acquire a Case IH dealership in the Vojvodina region of Serbia. The acquisition is expected to close on or around December 14, 2012.
David Meyer, Titan Machinery's Chairman and CEO, said, "We are excited to expand our Eastern European operations into Serbia. This acquisition will enable us to further leverage our expanding dealership network in the region, which is strategically located near our existing dealerships in Romania and Bulgaria. We continue to see selective international expansion as a growth platform to complement our core business in the Upper Midwest."
Serbia is contiguous to Romania and Bulgaria, where Titan Machinery's other international dealerships are located. Serbia is rich in productive farmland, and agriculture represents approximately 11% of its total gross domestic product, while the agricultural industry employs 26% of the Serbian population. The country's primary crops are wheat, corn, soybeans, sunflowers and sugar beets. In its most recently reported fiscal year, the CaseIH dealership being acquired reported revenue of approximately $8.5 million.
Peter Christianson, Titan Machinery's President and Chief Operating Officer, stated, "Our newly acquired dealership has been serving its market for ten years and has a knowledgeable and experienced management and sales team. We look forward to working with the team and applying the Titan Machinery operating model to our newest international dealership. We continue to be pleased with our success in finding strong international CNH dealerships to join the Titan Machinery network abroad."