TITAN MACHINERY : Announces Agreement to Acquire St. Joseph Equipment Inc.'s Construction Equipment Business
05/02/2011| 07:10am US/Eastern
Titan Machinery Inc. (NASDAQ: TITN) announced today that it has entered
into a definitive purchase agreement to acquire St. Joseph Equipment
Inc.'s construction equipment business. The acquisition consists of four
construction equipment locations in Shakopee, Hermantown and Elk River,
Minnesota, and La Crosse, Wisconsin. The acquisition is subject to
customary conditions to closing and is expected to close by the end of
St. Joseph Equipment Inc. was founded in 1948 by William Schams, Sr. in
La Crosse, Wisconsin. In 1956, William Schams Jr. purchased the company
and currently manages the business with his children -- Chuck Schams,
Steve Schams, Sherry Wuebben, and Larry Schams. The company has expanded
over the years to seven locations providing agricultural and
construction equipment in Minnesota and western Wisconsin. St. Joseph
Equipment Inc.'s agricultural division will continue to sell
agricultural equipment at its locations in La Crosse, Wisconsin, and
Eyota and Lewiston, Minnesota. Construction revenues for fiscal 2010
were approximately $45 million.
Chuck Schams of St. Joseph Equipment Inc. stated, "We will use this
divestiture of our construction equipment business to focus on expanding
our agricultural equipment business."
Four of the acquired construction equipment dealerships are well
situated throughout Minnesota. In addition, the acquisition of St.
Joseph's construction equipment business in La Crosse establishes Titan
Machinery's first construction equipment dealership in Wisconsin. With
this acquisition, Titan Machinery will have the exclusive Case
Construction Contract for the entire state of Minnesota and 11 counties
in western Wisconsin.
David Meyer, Titan Machinery's Chairman and CEO, said, "This acquisition
expands our construction equipment footprint throughout Minnesota,
solidifies our Case CE business in the state of Minnesota and represents
our entry into the state of Wisconsin. This will create very strong
synergies and market potential in the Minneapolis/St. Paul metro and
surrounding areas. The Schams family has built a very positive
reputation in the construction equipment business and their customer
relationships throughout Minnesota and surrounding areas of western
Wisconsin have been cultivated over many years of exceptional service."
About Titan Machinery Inc.
Titan Machinery Inc., founded in 1980 and headquartered in West Fargo,
North Dakota, is a multi-unit business with mature locations and newly
acquired locations. The Company owns and operates a network of
full-service agricultural and construction equipment stores in the
United States. Upon closing of the acquisitions of the St. Joseph's
construction equipment dealerships and the previously announced Carlson
Tractor and Equipment dealerships, the Titan Machinery network will
consist of 87 dealerships in North Dakota, South Dakota, Iowa,
Minnesota, Montana, Nebraska, Wisconsin and Wyoming, including two
outlet stores, representing one or more of the CNH Brands (NYSE: CNH), a
majority-owned subsidiary of Fiat Industrial (Milan: FI.MI), including
Case IH, New Holland Agriculture, Case Construction, New Holland
Construction, Kobelco and CNH Capital. Additional information about
Titan Machinery Inc. can be found at www.titanmachinery.com.
Forward Looking Statements
Certain statements found in this press release may constitute
forward-looking statements as defined by Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements are based on current
expectations and include any statement that does not directly relate to
a current or historical fact. Such statements are generally identifiable
by the terminology used, such as "anticipate," "believe," "intend,"
"expect," "plan," or other similar words. Our forward-looking statements
in this release generally relate to the benefits related to the St.
Joseph construction equipment dealership acquisition, the continued
agricultural equipment business operations of St. Joseph, and the
anticipated closing date of the acquisition. Although it is not possible
to foresee all of the factors that may cause actual results to differ
from our forward-looking statements, such factors include, among others,
the timely satisfaction of the considerations to closing the
acquisition, integrating St. Joseph's construction equipment dealership
operations with Titan Machinery's existing network and those risks
described from time to time in our reports to the Securities and
Exchange Commission. Investors should not consider any list of such
factors to be an exhaustive statement of all of the risks, uncertainties
or potentially inaccurate assumptions that could cause our current
expectations or beliefs to change. Stockholders and other readers should
not place undue reliance on "forward-looking statements," as such
statements speak only as of the date of this release. We undertake no
obligation to update publicly or revise any forward-looking statements.
Senior Managing Director
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