Issue link: http://read.dmtmag.com/i/531852
I DA U N I V E R S A L M ay -J u n e 2 0 1 5 19 TRENDS AND TIDBITS Trends continued on page 21 Finning International Inc., a Canadian company and Caterpillar's largest heavy equipment dealership globally, announced on May 6 that it has reached an agreement to purchase the operating assets of the Cat dealership of Kramer Ltd. for approximately $230 million, subject to working capital adjust- ments. In 2014, the acquired dealership business generated approximately $275 million in revenue. Finning will become the approved Cat dealer in Saskatch- ewan in July of this year, subject to customary closing conditions. A er a remarkable 70 years of service in Saskatchewan, the Kramer family has decided to retire from the equipment dealer- ship business. is acquisition combines complementary capabilities, customer bases and highly skilled employees across Finning's terri- tory in British Columbia, Alberta, Yukon, Northwest Territories and part of Nunavut with Kramer's presence in Saskatchewan. e two companies already share common customers who operate across these adjacent territories and will benefi t from the conti- nuity and support of a single dealer. Customers will also benefi t from improved equipment and parts availability, world- class product support and access to Finning's extensive branch network of 50 locations. For Finning, Saskatchewan is a highly attractive growth oppor- tunity that diversifi es its revenue base into sectors such as potash and uranium. e acquisition will be funded with cash and will be immediately accretive to earnings per share. Finning to Acquire Kramer Cat Dealership in Saskatchewan "Expanding Finning's Western Canadian operations into Saskatchewan is a great strategic fi t and represents a compel- ling growth opportunity for our company, employees, customers and shareholders," said Scott omson, president and CEO, Finning International. We have great respect for the Kramer family legacy and everything they have achieved. We will build on their strong heritage by growing the business, providing our customers with a terrifi c experience, and contributing to communities in Saskatchewan. is acquisition is also a testa- ment to our current Finning employees in Canada who have worked tirelessly to put us in the strategic and fi nancial position to make this opportunity possible." Joining Finning is a talented and dedicated team of 475 Kramer employees with a deep understanding of the local market and well-established customer relationships throughout the province at parts, sales and service locations in Estevan, Kindersley, Battleford, Regina, Saskatoon, Swi Current and Tisdale in addition to Cat Rental Stores in Regina and Saskatoon. Tony de Sousa has been named the executive to lead Finning Saskatchewan. He will be based in the Saskatchewan headquarters, which will remain in Regina. Tony has been with Finning for 39 years and has extensive senior leadership experi- ence in sales, service and opera- tions. Tony and his family will move from Edmonton to Regina. ● Finning: • Founded in Vancouver in 1933 by Earl B. Finning • Approximately 5,200 employees across 50 locations in Western Canada and 14,000 globally • Finning serves customers in various industries, including mining, construction, petroleum, forestry, agriculture and a wide range of power systems applications • Named the 2014 Technology Dealer of the Year in Canada by Trimble, a leading provider of advanced location-based solutions 1,250 highly-skilled, Caterpillar-trained heavy equipment technicians in Canada • 530 service trucks in Canada to provide ser- vice where and when customers need it • In 2014, generated revenue of $3.6 billion in Canada; $6.9 billion globally Kramer: • Founded in 1944 by Robert (Bob) A. Kramer • Approximately 475 employees in 9 locations across Saskatchewan