Brandt Tractor Ltd. to Acquire Cervus Equipment Corporation

Regina-based Brandt Tractor Ltd. has reached an agreement to acquire Calgary-based Cervus Equipment Corporation for approximately $302 million in cash.

The deal, which will be implemented through a plan of arrangement, will see Brandt pay $19.50 per share in cash for all the issued and outstanding common shares of Cervus, excluding those already owned by Brandt, which currently has a 9% stake in Cervus.

The transaction, which is subject to shareholder approval, is expected to close in the fourth quarter, creating “one of the largest privately held dealership groups in the world,” according to a release.

MLT Aikins acted as Brandt’s tax counsel on the plan of arrangement, and will act for Brant in respect of any required Cervus pre-closing reorganization transactions and any Brandt post-closing reorganization transactions.

Cervus, which currently trades on the Toronto Stock Exchange, provides equipment to the agriculture, transportation and industrial sectors in Canada, Australia and New Zealand.

“The addition of Cervus’ offerings will form three brand-new segments at Brandt dedicated to serving the agriculture, transportation and material handling industries,” Brandt CEO Shaun Semple said in a statement.

The Brandt Group of Companies is the world’s largest privately owned John Deere Construction & Forestry equipment dealer, with more than 100 locations in Canada and the U.S.