VANCOUVER, B.C and REGINA, Sask.— Finning International announced today it has reached an agreement to purchase the operating assets of the Cat dealership, Kramer Ltd. for approximately $230 million.
Finning said the acquired dealership made $275 million in revenue last year.
With the purchase, Finning will become the approved Cat dealer in Saskatchewan in July of this year. Before it was purchased, Kramer was a family-owned business.
“Expanding Finning’s Western Canadian operations into Saskatchewan is a great strategic fit and represents a compelling growth opportunity for our company, employees, customers and shareholders,” said Scott Thomson, president and CEO, Finning International. “We have great respect for the Kramer family legacy and everything they have achieved. We will build on their strong heritage by growing the business, providing our customers with a terrific experience, and contributing to communities in Saskatchewan. This acquisition is also a testament to our current Finning employees in Canada who have worked tirelessly to put us in the strategic and financial position to make this opportunity possible.”
For Finning, Saskatchewan is a highly attractive growth opportunity that diversifies its revenue base into sectors such as potash and uranium, the company said in a release.
Nearly 500 Kramer employees will be joining the Finning team with the purchase.
“It’s been an honour to lead the Kramer Cat dealership for the past 23 years and I am proud of our organization’s many accomplishments,” said Tim Kramer, president of Kramer. “Having spent considerable time with members of the Finning team, I am confident Finning will be a great addition to the province of Saskatchewan and our employees are joining a successful Canadian business that cares about its employees, customers and the community.”
Leading Finning Saskatchewan is Tony de Sousa. He will be based in Regina, Sask. and has been with Finning for almost 40 years.