Rush Enterprises Completes Acquisition of Smithbros.com
8 September 2000
Rush Enterprises Completes Acquisition of Smithbros.com
SAN ANTONIO--Sept. 8, 2000--Rush Enterprises Inc. , which operates the largest network of Peterbilt heavy-duty truck dealerships in North America, John Deere construction equipment dealerships in Texas and Michigan, and D&D Farm and Ranch Supermarket Inc. (D&D), which operates two of the largest farm and ranch superstores in America, one in Seguin, Texas, and one in Hockley, Texas, today announced that it acquired the assets of Smith Brothers Catalogs Inc. ("The Premier Catalog of the Western Horseman"), and its' online western superstore -- Smithbros.com.The acquisition provides Rush with Smith Brothers' current list of over 120,000 customers and the technology to offer D&D's expansive inventory through a catalog and online. Smith Brothers is located on IH 35 in Denton, Texas, where D&D plans to open its third farm and ranch superstore.
In announcing the acquisition, W. Marvin Rush, chairman and chief executive officer of Rush Enterprises Inc., stated, "The acquisition of this business will complement the brick and mortar facilities we have in Seguin, Hockley, and now, Denton, Texas. Combining our inventories online will allow us to be the, 'One-Stop Shop' for virtually any farm, ranch or western person anywhere in the world." Rush added, "We look forward to joining forces with this organization and working together to create this 'One of a kind Western Shopping experience.'"
The transaction was valued at approximately $2.3 million with the purchase price paid in cash. Rush intends to operate Smith Brothers as a Rush Retail Center, and will begin to integrate their operations immediately. Rush had revenues of $808.4 million during 1999 while Smith Brothers had revenues of approximately $4.5 million during 1999.
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 retail farm and ranch superstores that serve the greater San Antonio, Houston and Dallas/Fort Worth, Texas areas.
Certain statements, including statements regarding plans to open a future store in Denton, Texas, 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.