Cervus Equipment Corporation has entered into an agreement in which Brandt Tractor Ltd. will acquire all of the issued and outstanding common shares of the company for $19.50 per share in cash, valuing Cervus at approximately $302 million.
The board of directors claims that the transaction is in the best interests of the company and is fair to holders of Cervus shares.
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, road building, forestry and more, will further establish Brandt as a total solutions provider across our diverse customer groups.”
Completion of the transaction will be subject to shareholder approval by two-thirds of all votes cast at a meeting of the company’s shareholders.
The completion of the transaction is also subject to certain third party approvals, including from each of John Deere Canada ULC and Peterbilt Motors Company, each of which has provided consent to proceed with the change of control.
Cervus expects to hold the meeting of shareholders in October 2021. Subject to the conditions set forth above, the transaction is expected to close in the fourth quarter of 2021.
RELATED:
- Brandt to hire more than 1,000 new employees
- Cervus Equipment sells its construction dealership group
- Brandt is acquiring Nortrax in Canada
