Saskatchewan-based Brandt purchases Cervus Equipment

August 17, 2021, 9:35 am

Saskatchewan-based Brandt Tractor Ltd. has an agrement to acquire Cervus Equipment Corporation, which will make Brandt the largest farm equipment dealer in the world.

Brandt will acquire all of the issued and outstanding common shares of the Company for $19.50 per share, valuing Cervus at $302 million on an equity value basis, 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.

Angela Lekatsas, President and Chief Executive Officer of Cervus, said, "This Transaction delivers tremendous value for our shareholders and clearly demonstrates the successful execution of our strategy. As a private company with a committed, well-capitalized and long-term owner, Cervus will be better positioned for the next stage of evolutionary growth for our dealerships. The size and scale of the entity created by the combination of our two companies will allow for increased investment into Cervus for the benefit of our employees and customers".

Shaun Semple, Chief Executive Officer of Brandt, said, "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."

Entry into the Arrangement Agreement was based on the unanimous recommendations of both the board of directors of Cervus (the "Board") and a Special Committee of independent directors (the "Special Committee") and followed an extensive review and analysis of what is in the best interests of Cervus and its stakeholders, including shareholders, customers, partners and employees. The conclusions and recommendations of the Special Committee and the Board have been based on a number of factors, including (without limitation) the following:

John Deere Canada ULC and Peterbilt Motors Company have provided consent to proceed with the change of control.

Cervus is a leading equipment solutions provider to customers in agriculture, transportation, and industrial markets across Canada, Australia and New Zealand.

The Company operates 64 Cervus dealerships and is the authorized representative of leading Original Equipment Manufacturers including: John Deere agricultural equipment; Peterbilt transportation equipment; and Clark, Sellick, Doosan, JLG and Baumann material handling equipment.

The Brandt Group of Companies is comprised of Brandt Agricultural Products, Brandt Engineered Products, Brandt Equipment Solutions, Brandt Road Rail, Brandt Positioning Technology, Brandt Truck Rigging & Trailers, Brandt Finance, Brandt Developments Ltd., Brandt Road Technology, Brandt Mineral Technology, and Brandt Tractor Ltd. — the world's largest privately-owned John Deere Construction & Forestry equipment dealer. Brandt has over 100 locations in Canada and the U.S., over 3,400 employees, and a growing international audience; serving the construction, road building, forestry, agriculture, rail, mining, steel, and energy industries with unique custom products. Brandt is one of Canada's largest privately owned companies and is among an elite group of Platinum Club members of Canada's Best Managed Companies.