Canadian company and Caterpillar dealer, Finning International, has reached an agreement to buy the operating assets of Kramer, a Cat dealership based in the Saskatchewan region of the country.
Finning said the approximate value of the acquisition was C$230 million (€167 million), subject to working capital adjustments, and the deal becomes effective in July.
Kramer, which was a family run business for the past 70 years, produced a turnover in 2014 of C$275 million (€200 million). It also operated two Cat Rental stores, so the acquisition will extend Finning’s rental operations in Canada.
Scott Thomson, president and CEO of Finning International, said: “Expanding our operations into Saskatchewan is a great strategic fit. We have great respect for the Kramer family legacy and everything they have achieved, and we will build on their strong heritage.”
A Finning press statement added: “This acquisition combines complementary capabilities, customer bases and highly skilled employees across Finning's territory in British Columbia, Alberta, Yukon, Northwest Territories and part of Nunavut with Kramer’s presence in Saskatchewan.
“The two companies already share common customers who operate across these adjacent territories and will benefit from the continuity and support of a single dealer.
"Customers will also benefit from improved equipment and parts availability, world-class product support and access to Finning's extensive branch network of 50 locations.”
A total of 475 Kramer employees in nine branches will join Finning, with Tony de Sousa, a Finning executive who has been with the company for nearly 40 years, heading up the new operation.