Brandt Tractor Ltd. will acquire Cervus Equipment Corporation, including all of the issued and outstanding common shares of the company, for $19.50 per share in cash, valuing Cervus at approximately $302 million.
Shaun Semple, Chief Executive Officer of Brandt, said, "The Brandt team is excited about this deal as it will allow us to better serve our customer base across Canada. The addition of Cervus' offerings will form three brand new segments at Brandt dedicated to serving the Agriculture, Transportation and Material Handling industries. These segments, in addition to our existing specializations in construction, roadbuilding, forestry and more, will further establish Brandt as a total solutions provider across our diverse customer groups."
Angela Lekatsas, President and Chief Executive Officer of Cervus, said, "This transaction delivers tremendous value for our shareholders and clearly demonstrates the successful execution of our strategy. 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."
The completion of the transaction is also subject to certain third party approvals, including from each of John Deere Canada ULC and Peterbilt Motors Company, each of which has provided consent to proceed with the change of control, as well as certain regulatory approvals and other conditions.
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