Cervus Equipment to be sold to Brandt Tractor

by

Cervus Equipment has announced it has entered into an arrangement agreement with Brandt Tractor, part of Brandt Industries.

Brandt will acquire all of the issued and outstanding common shares of Cervus, excluding those held by Brandt, for $19.50 per share in cash, valuing Cervus at approximately $302 million on an equity value basis.

The consideration represents a 37 per cent premium to the 20-day volume-weighted average price of Cervus’ shares on the Toronto Stock Exchange for the period ending August 13, 2021.

Angela Lekatsas, president and CEO of Cervus, says, “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.”

Entry into the arrangement agreement was based on unanimous recommendations from both the board of directors of Cervus and a special committee of independent directors, and followed an extensive review and analysis of what is in the best interests of Cervus and its stakeholders, including shareholders, customers, partners, and employees, the company says.

“The Brandt team is excited about this deal as it will allow us to better serve our customer base across Canada,” says Shaun Semple, CEO of Brandt. “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, road building, forestry and more, will further establish Brandt as a total solutions provider across our diverse customer groups.”

The arrangement agreement does not contain a financing condition, and the consideration will be paid in cash.

John Deere Canada and Peterbilt Motors have provided consent to proceed with the change of control.

Completion of the transaction will be subject to shareholder approval by two-thirds of all votes cast at a special meeting, and is also subject to certain third party approvals.

Wake up with RealAgriculture

Subscribe to our daily newsletters to keep you up-to-date with our latest coverage every morning.

Wake up with RealAgriculture

Please register to read and comment.

 

Register for a RealAgriculture account to manage your Shortcut menu instead of the default.

Register