Regina based Brandt Tractor is buying Cervus Equipment.
Cervus has 64 dealerships across Canada, Australia and New Zealand and handles a variety of equipment from John Deere Tractors to Peterbilt.
Under the agreement, Brandt is offering $19.50 per share in cash with Cervus valued at approximately $302 million.
The deal offers a 37% premium to the 20-day volume-weighted average price of the Company’s shares on the Toronto Stock Exchange for the period ending August 13, 2021.
Shaun Semple, Chief Executive Officer of Brandt, says 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."
Brandt says the transaction would create one of the largest privately-held dealership groups in the world.
According to the companies press release as of August 16, 2021, Brandt and its affiliates hold approximately 9% of the outstanding shares of Cervus.
The completion of the Transaction is subject to certain third party and regulatory approvals, including approval from each of John Deere Canada ULC and Peterbilt Motors Company, each of which has already provided consent to proceed.
Cervus expects to hold a Special Meeting of shareholders to consider the transaction in October.