Publicly traded Rocky Mountain Dealerships Inc. says it has struck a deal with its chairman and CEO through which it will become a private company.
A numbered company controlled by chairman Matthew Campbell and CEO Garrett Ganden has agreed to pay $7 each for the shares they don't currently own, said the Calgary-based firm on Monday.
The arrangement values the company, which says it is the largest farm equipment dealer in Canada with 36 locations in Alberta, Saskatchewan and Manitoba, at $135 million (or $188 million including debt and lease obligations and excluding floor plan payables).
While reporting third-quarter financial results last week, Ganden said Rocky Mountain is focusing on strengthening its balance sheet despite the recent above-average Canadian harvest in view of ongoing uncertainty surrounding the COVID-19 pandemic and trade disputes.
``Canadian industry data indicates the delivery of new units of large horsepower equipment and self-propelled combines remain at historic lows,'' he said in a news release.
``However, crop reports are encouraging, showing the harvest is essentially complete and ahead of historical averages across our territory, while crop prices are now five to 19 per cent higher than in January 2019.'
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