Cervus Equipment is selling its construction dealership group to Calmont Equipment Ltd.
The construction group is composed of four dealerships in Edmonton, Calgary, Red Deer and Fort McMurray, Alberta. All four locations represent the Bobcat, CMI and JCB brands.
Cervus decided to sell the construction dealerships to focus its growth on agriculture, transportation and material handling operations.
“Due to the dedication of our employees, our construction group has weathered the recent economic cycle, and is performing well. However, a key part of Cervus’ strategy is to grow the scale and footprint of our dealership groups, and over the long run we see stronger opportunities for expansion in our other segments,” said Graham Drake, President and CEO of Cervus.
“I am pleased the new owner Calmont Equipment Ltd. shares our values in serving customers and partnering with the manufacturer. Most importantly, Calmont places high value on people, and is eager for our construction people to join their team and continue to drive the business forward together.”
The Edmonton-based Calmont Equipment currently supplies heavy and light duty vehicle rentals including fleet trucks, work trucks, commercial and company vehicles. Alongside Edmonton, the company also has locations in Calgary, Saskatoon and Winnipeg.
According to Cervus, the transaction price of the sale is in excess of its carrying value. As well, the deal includes the land and building at the Fort McMurray location.
Closing of the transaction is subject to all required regulatory and third-party approvals. Assuming all conditions are met, the deal is currently anticipated to close in the next 60 days.
On closing, Cervus will hold interests in 60 dealerships in Canada, New Zealand and Australia, employing more than 1,500 people. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Peterbilt transportation equipment; and Clark, Sellick and Doosan material handling equipment.