Cervus buys Frontier Peterbilt
By Cervus EquipmentNews
April 3, 2012 - Cervus Equipment has completed its purchase of four Peterbilt equipment dealerships and related businesses in Saskatchewan for about $33 million. The acquisition of Frontier Peterbilt Sales, Frontier Collision Centre and certain properties from Frontier
Developments, included $14.4 million for land and buildings.
The deal involved a vendor take-back mortgage of $13.4 million and $19.6 million in cash. The assets include four Frontier Peterbilt dealerships/branches in Saskatoon, Regina, Estevan and Lloydminster, and a collision repair centre in Saskatoon. The business of FPSL, and FCCL will be integrated into Cervus' construction and industrial equipment segment and will continue to operate under the Frontier Peterbilt Sales and Frontier Collision Centre trade names.
"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 Cervus president and CEO Peter Lacey. "This acquisition enables Cervus to diversify operationally and geographically and provides a strong platform for future growth.''
Frontier Peterbilt sells new and used trucks as well as parts and service to customers throughout Saskatchewan. Cervus runs authorized agricultural, commercial, industrial and transportation equipment dealerships in Western Canada. It also holds a 60 per cent equity interest in New Zealand-based Agriturf, an authorized supplier of John Deere equipment, parts and service.
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