Brian Zinchuk is editor and owner of Pipeline Online
REGINA – Brandt Tractor Ltd., a wholly owned subsidiary of the Brandt Group of Companies, announced on Oct. 22 it had successfully acquired Cervus Equipment Corp., following a 97.66 per cent endorsement for the deal in an October 12, 2021 vote by Cervus shareholders. The transaction sees publicly-traded Cervus transition to 100 per cent private ownership in an all-cash deal.
In a brief statement on its website, Cervus said the deal came in at $19.50 per share in cash, valuing Cervus at approximately $302 million on an equity value basis. The company had peaked at $24.27 on Feb. 21, 2014, and most recently bottomed out at $5.91 on March 13, 2020, right around when the COVID-19 pandemic took hold.
The transaction officially closed on October 22, 2021.
Brandt called it a “landmark transaction” which creates Canada’s largest-ever equipment dealer network, adding 64 agriculture, transportation, and material handling equipment locations to Brandt’s existing John Deere construction and forestry dealerships across Canada. When fully integrated, it will give Cervus’ customers access to Brandt’s extensive national parts and technical support infrastructure.
Within Saskatchewan, this includes Cervus locations across four product lines. They include Peterbilt locations in Estevan, Regina, Saskatoon and Lloydminster. John Deer locations are in Melfort, Nipawin, Prince Albert, Rosthern, Saskatoon and Watrous. Forklift locations are in Regina and Saskatoon. Finally, there is one TRP location in Prince Albert which provides “replacement aftermarket parts for all makes of commercial trucks, trailers, and buses.”
The purchase further establishes the firm’s position as a “premier privately held Canadian company and the largest John Deere dealership in the world,” the company said in an Oct. 22 release.
“The addition of Cervus’ branch network is a big win for customers in all of the affected markets,” said Brandt owner and CEO, Shaun Semple. “We’ve got a lot to offer and we’re ready to roll up our sleeves and earn the loyalty of our new customers through a combination of premium products and services and a consistent, high-quality customer support experience.”
The company said “The deal gives Brandt unparalleled market penetration, expanding their geographical footprint and enabling the company to add, in select markets, John Deere agricultural equipment; Peterbilt transportation equipment; and Clark, Sellick, JLG, Baumann and other material handling equipment in addition to their already-impressive list of products and services.”
With the acquisition of the Cervus locations in Canada, Australia and New Zealand, Brandt now owns and operates 120 full-service equipment dealerships with an additional 50+ service points and employs over 5,100 people.
The company said “The transaction will make a significant impact across the industry as the company rolls out plans to introduce expanded parts inventories, service department capacities, and extended hours of operation at the former Cervus dealerships. As operations are integrated, staffing in these locations is expected to increase by up to 40 per cent with significant new facility construction across the entire network.”
“Cervus staff, customers, and their communities will all benefit from this acquisition through a stronger, more diversified network of support dealerships,” concluded Semple. “Brandt is fully committed to ongoing investment in business infrastructure and community enhancement; there is tremendous opportunity for everyone in this deal.”
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