Toromont Industries has been given the green light by the Canadian government to complete its acquisition of the Hewitt Group of Companies.
On Oct. 22, Toromont announced it has received a no-action letter from the Canadian Commissioner of Competition under the Competition Act regarding the acquisition.
The no-action letter satisfies the regulatory approval condition under the definitive agreement between Toromont and the Hewitt Group of companies.
By meeting the regulatory approval conditions, Toromont now expects to close the transaction on Oct. 27.
“We appreciate the hard work and support of the Hewitt team in helping us reach this milestone and in preparing for the transition, while continuing to operate Hewitt’s day-to-day business and serve its customers. We look forward to continuing to work closely with the Hewitt team to ensure a smooth integration of the businesses following closing,” said Scott Medhurst, Toromont president and CEO.
Until closing, both independent companies will operate as business as usual. Following the closing of the acquisition, customers and other stakeholders should expect to see uninterrupted service delivery as Toromont begins to rebrand and integrate operations, according to the company.
In August, Toromont announced it is purchasing Hewitt, a Quebec-based Caterpillar dealer for more than $1 billion. The acquisition is the largest deal between Caterpillar dealers in the manufacturer’s history.
Hewitt Equipment, a private company, is the authorized Caterpillar dealer for the province of Québec, Western Labrador and the Maritimes, as well as the Caterpillar lift truck dealer for most of Ontario.
The acquisition will see Toromont’s network of dealerships grow by 45 branches and 2,000 employees in Quebec and the Maritimes. When the deal is finalized, Toromont will operate 120 Cat dealerships throughout Nunavut, Manitoba, Ontario, Québec, New Brunswick, Prince Edward Island, Nova Scotia and Newfoundland & Labrador.
Last year, Hewitt’s revenue exceeded $1 billion, including an operating profit of $66.4 million and net earnings of $46.6 million.