Rush Enterprises Completes Acquisition of Pressley Peterbilt
7 December 1999
Rush Enterprises Completes Acquisition of Pressley Peterbilt
SAN ANTONIO--Dec. 7, 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 Michigan, today announced that it acquired the assets of Norm Pressley's Truck Center, (Pressley) a Peterbilt truck dealer.The acquisition provides Rush with the exclusive rights to sell Peterbilt trucks and parts from three new locations in San Diego, Escondido and El Centro, which encompasses most of southern California. Rush now operates 32 truck locations in 7 states.
The transaction was valued at approximately $4.5 million with the purchase price paid in cash. An additional $700,000 may be paid based on a performance based objective. Rush intends to operate Pressley as a full-service Peterbilt franchise, and will begin to integrate their operations into the Rush Truck Centers immediately. Rush had revenues of $612.8 million during 1998 while Pressley had revenues of approximately $35.8 million for the twelve months ended Oct. 31, 1999. Pressley recorded unaudited pretax earnings of approximately $940,000 for the twelve months ended Oct. 31, 1999.
In announcing the acquisition, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises Inc. stated, "The acquisition of this franchise will complement the largest full service truck dealership network in the country. Covering large sections of Texas, California, Oklahoma, Louisiana, Colorado, New Mexico and Arizona, Rush Truck Centers now have 32 locations offering seamless service, consistent pricing and 24 hour dependability across the entire southwest region. With the continued booming growth throughout the southwest coupled with the successful growth of NAFTA related businesses, this acquisition is a great geographical fit for Rush."
Mr. Rush added, "We look forward to joining forces with this very well-run organization and offering our consistently high-quality products and services over a much larger service territory."
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, Arizona, New Mexico 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.