Regina, Vancouver 聽鈥� On May 6 Finning International Inc. (TSX: FTT) announced 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 adjustments. In 2014, the acquired dealership business generated approximately $275 million in revenue. Finning will become the approved Cat dealer in Saskatchewan in July of this year, subject to customary closing conditions. After a remarkable 70 years of service in Saskatchewan, the Kramer family has decided to retire from the equipment dealership business.
This acquisition combines complementary capabilities, customer bases and highly skilled employees across Finning鈥檚 territory in British Columbia, Alberta, Yukon, Northwest Territories and part of Nunavut with Kramer鈥檚 presence in Saskatchewan.
鈥淓xpanding Finning鈥檚 Western Canadian operations into Saskatchewan is a great strategic fit and represents a compelling growth opportunity for our company, employees, customers and shareholders,鈥� said Scott Thomson, president and CEO of Finning International. 鈥淲e 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 terrific experience, and contributing to communities in Saskatchewan. This acquisition is also a testament to our current Finning employees in Canada who have worked tirelessly to put us in the strategic and financial position to make this opportunity possible."
鈥淚t鈥檚 been an honour to lead the Kramer Cat dealership for the past 23 years and I am proud of our organization鈥檚 many accomplishments,鈥� said Tim Kramer president of Kramer Ltd. 鈥淗aving spent considerable time with members of the Finning team, I am confident Finning will be a great addition to the province of Saskatchewan and our employees are joining a successful Canadian business that cares about its employees, customers and the community.鈥�
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鈥檚 extensive branch network of 50 locations.
For Finning, Saskatchewan is a highly attractive growth opportunity that diversifies its revenue base into sectors such as potash and uranium. The acquisition will be funded with cash and will be immediately accretive to earnings per share.
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, Swift Current and Tisdale in addition to Cat Rental Stores in Regina and Saskatoon.
鈥淭his is a historic day for Finning. We are passionate about keeping our employees safe, enabling our customers鈥� success and building communities. With that in mind, we are pleased to appoint Tony de Sousa as the executive to lead the Saskatchewan operations. In addition to his impressive experience, Tony brings a genuine commitment to developing our people, growing our business and serving our customers,鈥� said Juan Carlos Villegas, president of Finning Canada and COO of Finning International.
Tony de Sousa will be based in the Saskatchewan headquarters, which will remain in Regina and he and his family will move from Edmonton to Regina. He has been with Finning for 39 years and has extensive senior leadership experience in sales, service and operations.
鈥淚鈥檝e known Tim Kramer for many years and have tremendous respect for the business he, Don and the entire Kramer family have built in Saskatchewan,鈥� said Tony de Sousa, VP Saskatchewan for Finning. 鈥淚鈥檇 like to extend a heartfelt welcome to Kramer employees to the Finning family. I鈥檓 looking forward to learning from their experience, customer relationships and understanding of the local market.鈥�
Finning International Inc. is the world's largest Caterpillar equipment dealer delivering unrivalled service to customers for over 80 years. Finning sells, rents and services equipment and engines to help customers maximize productivity. Headquartered in Vancouver, B.C., the Company operates in Western Canada, Chile, Argentina, Bolivia, Uruguay, as well as in the United Kingdom and Ireland.
As the Caterpillar dealer in Saskatchewan, Kramer sells, rents and provides service to diverse market segments across the province. Founded in 1944, Kramer employs approximately 475 people, including approximately 160 mechanics, and operates seven dealership operations in Regina, Saskatoon, Estevan, Swift Current, North Battleford, Kindersley and Tisdale, as well as rental locations in Regina and Saskatoon.
