A major Caterpillar dealer for mining equipment in Canada has entered into an agreement to sell its operations in a deal worth C$1.02bn.
The Hewitt Group, the official authorised Caterpillar dealer in Québec, Canada, announced that the company will sell its business to Toromont Industries to leverage “an extensive Canadian network”.
The deal wil see the Ontario-based Toromont acquire the 45 Caterpillar dealerships across Quebec, Maritimes, Labrador West and Ontario under Hewitt Group.
Toromont will pay Hewitt C$917.7 million in cash and 2.25 million Toromont shares, the company said.
“The decision to sell the business founded 65 years ago by my father has not been an easy one, but is the outcome of much reflection on the part of my son David and me. We are extremely proud to have been at the centre of the resource and construction industries in Québec and the Maritimes helping to build roads, dams and mines and keep them running,” said Jim Hewitt, Chairman and CEO of Hewitt. “With the trend towards consolidation taking root in each of the sectors in which Hewitt operates, we are confident that Hewitt’s Customers and Employees will benefit from working within an even larger organization with access to even more resources and capital.”
“Service par Excellence has been a cornerstone of Hewitt’s success over the years. Toromont shares this culture and our commitment to Health and Safety, our number one Priority,” added Mr. Hewitt.
"Acquiring Hewitt marks a very important milestone for Toromont and is beneficial to our customers, employees and shareholders on many levels," said Scott J. Medhurst, Toromont President and CEO. "We are very proud to have the Hewitt Group join us and are privileged to be taking on the stewardship of this excellent business and building on the family legacy.”
Mr. Medhurst added, "The acquisition delivers a substantial growth opportunity, allowing us to expand into the significant Québec, Western Labrador and Maritime markets, and strengthens our expertise in the mining, construction, power systems and forestry sectors. We are focused on ensuring a seamless transition for our customers and employees."