/NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE
U.S/
CALGARY, Dec. 20 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky Mountain" or the "Corporation") announced today the successful completion of its initial public offering of 6,500,000 common shares ("Common Shares") of the Corporation, at a price of $10.00 per Common Share for total gross proceeds of $65,000,000 (the "Offering"). The Offering was underwritten by a syndicate of underwriters led by RBC Capital Markets and included BMO Capital Markets, Scotia Capital Inc., Blackmont Capital Inc. and HSBC Securities (Canada) Inc. (collectively, the "Underwriters"). The Corporation has also granted to the Underwriters an over-allotment option to purchase up to an additional 975,000 Common Shares at $10.00 per Common Share for gross proceeds of $9,750,000, which expires 30 days following closing of the Offering.
The net proceeds of the Offering were used by the Corporation, in part, to acquire all of the issued and outstanding shares of Hammer Equipment Sales Limited ("Hammer Equipment") and Hi-Way Service (Medicine Hat) Inc. ("HWMH"), including HWMH's subsidiaries, Hi-Way Service (High River) Inc. ("HWHR") and Hi-Way Service Leasing Inc. ("HWL") (collectively, HWMH, HWHR and HWL are "Hi-Way Service"). Hammer Equipment is an independent dealer of construction equipment with assigned dealership territories covering most of Alberta and reaching into Saskatchewan, British Columbia, the Northwest Territories and Nunavut. Hi-Way Service is an independent dealer of agricultural and construction equipment with assigned dealership territories throughout southern Alberta.
Upon closing of the Offering, Matt Campbell, Rocky Mountain's CEO commented, "This transaction brings together two exceptional businesses to create a powerful Alberta based, heavy equipment dealership group. The combination of Hammer Equipment and Hi-Way Service provides a comprehensive Alberta footprint in the agriculture and construction sectors, that will enable us to deliver even better service to all of our customers. We are looking forward to capitalizing on the strengths of both organizations, and excited by our future growth opportunities within Alberta and other markets."
The Common Shares will commence trading today on the Toronto Stock Exchange under the symbol "RME".
About Rocky Mountain:
Through the combination of the Hammer Equipment and Hi-Way Service businesses, Rocky Mountain represents one of Alberta's largest agriculture and construction equipment dealerships with 13 dealership branches, revenues of $290 million, and 400 employees 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.
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