An expansion-minded Calgary ag equipment dealership chain specializing in Case IH plans to add three southeastern Saskatchewan locations to its portfolio.
Rocky Mountain Dealerships announced Thursday it has signed a deal to buy “certain assets” of Wardale Equipment, including its Case IH dealerships at Yorkton, Langenburg and Preeceville, Sask., for an undisclosed cash sum plus 292,643 common shares in Rocky Mountain.
The Wardale sites, which also carry Seed Hawk, Degelman and Brandt equipment lines, are to become part of Miller Farm Equipment, which Rocky Mountain bought in 2008 and whose operations are “contiguous” with Wardale’s.
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Miller’s original Case IH dealerships included five in western Manitoba, at Brandon, Dauphin, Killarney, Boissevain and Shoal Lake, plus one in southeastern Saskatchewan at Moosomin, about 85 km south of Langenburg. Rocky Mountain bought two other Manitoba Case IH dealers late last year at Winkler and Neepawa and added them to the Miller group.
Wardale “will enhance our synergies in the Miller group,” Rocky Mountain CEO Matt Campbell said in a release.
The deal, he added, “will bring solid management, excellent revenue and a solid platform for expansion in Saskatchewan.”
Wardale posted “top-line” revenues of about $39 million is fiscal 2009, Rocky Mountain noted.
The deal is expected to close Monday (June 7), bringing Rocky Mountain’s total number of branches to 29. Of those, 16 will have been bought since the Calgary firm went public (TSX: RME) in late 2007.
