Rocky Mountain Dealerships strikes go-private deal that values it at $135 million
Posted Nov 2, 2020 12:32:42 PM.
Last Updated Nov 2, 2020 12:40:07 PM.
This article is more than 5 years old.
CALGARY — Rocky Mountain Dealerships Inc. says it has struck an agreement to be sold to a company controlled by its chairman and CEO and become a private company.
The Calgary-based firm, which says it is the largest farm equipment dealer in Canada with 36 locations in Alberta, Saskatchewan and Manitoba, says chairman Matthew Campbell and CEO Garrett Ganden have agreed to pay $7 each for the shares they don’t currently own.
The arrangement values the company at $135 million (or $188 million including debt and lease obligations and excluding floor plan payables).
Rocky Mountain says the price represents a 26.8 per cent premium to its closing price on Friday — in early trading in Toronto on Monday, it rose by almost 25 per cent to $6.88.
It says directors and officers who own or control about 13.6 per cent of the shares have agreed to support the arrangement, which requires two-thirds support at a special meeting to be held in December to go forward.
The company says it is allowed to actively negotiate with other potential buyers until Dec. 6, although it has agreed to pay a break fee of $2.575 million if the deal is ended before the date and $5.15 million afterwards.
It says the transaction has been endorsed by a special committee of independent directors formed to assess the fair market value of the shares and evaluate the proposal.
This report by The Canadian Press was first published Nov. 2, 2020
Companies in this story: (TSX:RME)
The Canadian Press
