The Portugal-based Nors, S.A. has announced it has entered in to a definitive agreement to acquire Strongco Corporation.
Under the agreement, Nors will acquire all of the outstanding equity of Strongco through a wholly-owned subsidiary for $3.15 per share in cash, resulting in a transaction value of about $193 million.
The consideration represents a premium of 75 per cent to the January 23 closing price of Strongco shares on the Toronto Stock Exchange.
“As Strongco moves to enhance its product and service offerings in Canada we are pleased to become part of the Nors Group,” said Robert Beutel, executive chairman of Strongco.
Nors’ global reach
Nors is a Portuguese-based private company that sells, rents and services construction, mining and forestry equipment, trucks, busses, cars and marine and industrial engines in 16 countries across four continents.
The company was founded in 1933, has 3,600 employees and a turnover of more than €1.6 billion. Nors represents numerous heavy equipment manufacturers, including Volvo Construction Equipment, Volvo Trucks, Sennebogen, Volvo Bus, Volvo Penta, Renault Trucks, UD Trucks, DongFeng Trucks, SDLG, Grove, Epiroc, Sandvik, Case IH, Kohler-SDMO, Yale and Hyster.
“Nors’ international experience and capital foundation, in many of the same product lines on four continents, brings the know-how and experience to elevate our potential to deliver leading edge quality to our growing customer base in an increasingly global environment,” Beutel said.
“The Strongco board is confident that this represents a favourable outcome for all of our stakeholders.”
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Strongco Corporation is a multiline mobile equipment dealer with operations across Canada. The company sells, rents and services equipment used in construction, infrastructure, mining, oil and gas, utilities, municipalities, waste management and forestry.
The company has about 500 employees across 26 branches in Canada. Strongco represents equipment manufacturers, including Volvo Construction Equipment, Case Construction, Manitowoc Crane, including National and Grove, Terex Trucks, Fassi, Sennebogen, Konecranes and SDLG.
“In recent years, Strongco’s management has done an excellent job of strengthening the company’s capital structure, streamlining the business and reducing costs,” said Tomás Jervell, chief executive officer of Nors.
“As we welcome Strongco into the Nors family, we believe that Strongco will benefit from Nors’ global presence and brand recognition, and from its long experience in the automotive and construction equipment industry.”