Cervus Equipment Corporation has entered into an arrangement agreement pursuant to which Brandt Tractor Ltd. will acquire all of the issued and outstanding common shares of the company, excluding those held by Brandt, for $19.50 per share in cash (the "consideration"), valuing Cervus at approximately $302 million on an equity value basis (the "transaction").
The consideration represents a 37 percent premium to the 20-day volume-weighted average price of the company's shares on the Toronto Stock Exchange for the period ending Aug. 13, 2021.
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."
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."
About Cervus Equipment Corporation
Cervus is an equipment solutions provider to customers in agriculture, transportation and industrial markets across Canada, Australia and New Zealand.
The company operates 64 Cervus dealerships and is the authorized representative of leading original equipment manufacturers including: John Deere agricultural equipment; Peterbilt transportation equipment; and Clark, Sellick, Doosan, JLG and Baumann material handling equipment.
Today's top stories