Cervus Equipment Corp. has announced a deal to buy another four John Deere dealerships in Alberta.
The company has entered into an agreement to acquire all of the shares of Evergreen Equipment Ltd., which owns Deere outlets at Bassano, Brooks, Drumheller and Hanna.
“Signing of this Definitive Agreement demonstrates Cervus’ continued opportunities for growth with John Deere in Western Canada,” said Graham Drake, President and CEO of Cervus in a news release. “We expect the acquisition of these four Alberta locations to be immediately accretive and generate long-term value within our Western Canadian operations.”
Cervus already owns a large group of John Deere dealerships in Canada, with 10 locations in Alberta and five in Saskatchewan. Between Deere, Bobcat, Peterbilt and several other brands, the company holds interests in 67 equipment dealership locations in Canada, New Zealand, and Australia.
The purchase price for Evergreen Equipment will be paid with a combination of cash and up to $2.2 million in common shares in Cervus. The deal is expected to be finalized in October.
Over the last three years, Evergreen reported an average gross annual revenue of more than $87 million.