CALGARY, June 19 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky Mountain" or the "Company") announces that it has entered into a Letter of Intent with the shareholders of Miller Farm Equipment (2005) Inc. ("Miller Inc.") to purchase all the shares of Miller Inc. Miller Inc. carries on a Case IH agricultural dealership business through six locations, five of which are in Manitoba and one in Saskatchewan representing revenues in excess of $100 million (Cdn.) in 2007. The purchase price shall be approximately one-half cash and one-half Rocky Mountain shares with the cash portion available from existing facilities. The deal is expected to close on or about July 31, 2008. The closing of the transaction will be subject to normal closing conditions and approval from Case IH.
Commenting on the Company's acquisition, Matt Campbell, CEO of Rocky Mountain said: "The acquisition of Miller Farm Equipment (2005) Inc. is an important step in our strategy to significantly grow our agricultural equipment business at Rocky Mountain. In addition, we are excited to welcome the owners of the Miller Inc. business to the Rocky Mountain executive team and look forward to working with them to pursue the numerous opportunities associated with this strategic and accretive acquisition."
About Rocky Mountain
Rocky Mountain represents one of Canada's largest agriculture and construction equipment dealerships with 14 dealership branches located throughout Alberta. Rocky Mountain sells, rents and leases new and used construction and agriculture equipment, including the Case Construction and Case IH Agriculture brands, as well as offering product support and finance and insurance products to its customers.
Additional information on Rocky Mountain is available on our website at www.rockymtn.com and on SEDAR at www.sedar.com. The Common Shares of Rocky Mountain trade on the Toronto Stock Exchange under the symbol "RME".
Forward Looking Information
Certain statements contained in this press release, including statements related to the expectation that the transaction will close, and that the transaction should be accretive and other statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "likely" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation.
These statements are based on certain assumptions made by the Company in light of its experience and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. Consequently, all of the forward-looking information and statements made in this press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects on the Company or its business or operations.
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