Rush Enterprises Completes Acquisition of John Deere Dealership
31 August 1999
Rush Enterprises Completes Acquisition of John Deere Dealership
SAN ANTONIO--Aug. 30, 1999--Rush Enterprises Inc. , which operates the largest network of Peterbilt heavy-duty truck dealerships in North America as well as John Deere construction equipment dealerships in Texas and Western Michigan, today announced that it has acquired the assets of Calvert Equipment Inc., (Calvert), a John Deere construction equipment dealership.The acquisition encompasses 13 counties in Eastern Michigan, including two full-service dealerships located in the Detroit and Flint areas. Rush currently operates 7 construction equipment locations in 2 states and 24 truck locations in 5 states. The transaction was valued at $11.1 million with the purchase price paid in a combination of cash and notes payable.
Rush intends to operate the acquired company as a full-service John Deere franchise, and will begin to integrate their operations into the Company's Rush Equipment Center network immediately. Rush had revenues of $612.8 million during 1998 while Calvert had revenues of approximately $18.6 million for the same period.
In announcing the acquisition, W. Marvin Rush, chairman and chief executive officer of Rush Enterprises Inc., stated, "This acquisition fits well with our existing Rush Equipment Centers in Western Michigan. We now have a territory of 67 counties encompassing a majority of the state of Michigan, which is one of the top 5 markets for construction equipment sales and services in the U.S."
Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and John Deere construction equipment dealerships in Texas and Michigan. Its current operations include a network of dealerships located in Texas, California, Oklahoma, Louisiana, Colorado and Michigan. These dealerships provide an integrated, one-stop source for the retail sale of new and used heavy-duty trucks and construction equipment; aftermarket parts, service and body shop facilities; and a wide array of financial services, including the financing of truck and equipment sales, insurance products and leasing and rentals. The Company also operates a retail farm and ranch superstore that serves the greater San Antonio, Texas area.
Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the company with the Securities and Exchange Commission.