Cervus Equipment Corp. Completes Acquisition of Frontier Peterbilt Sales Ltd., Frontier Collision Center Ltd. and Frontier Developments Ltd.

Symbol: CVL (TSX)

CALGARY, March 19, 2012 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") (TSX: CVL) today announced that it has completed the previously announced acquisition of the business assets of Frontier Peterbilt Sales Ltd. ("FPSL"), the business of Frontier Collision Center Ltd. ("FCCL") and certain properties from Frontier Developments Ltd. ("FDL").

Cervus acquired the net assets for approximately $33 million including $14.4 million for the land and buildings from FDL through a vendor take back mortgage of $13.4 million and $19.6 million in cash. The assets acquired include four Frontier Peterbilt dealerships/branches located in Saskatoon, Regina, Estevan and Lloydminster, Saskatchewan, and a collision repair centre located in Saskatoon, SK. The acquisition includes all of the real property currently occupied by these locations.  Over the last three (3) fiscal periods, the operations of FPSL and FCCL reported on average gross revenue of $79.3 million per year.

"The transportation equipment dealership business follows the same operating fundamentals as the agricultural, construction and industrial equipment dealerships business and, as such, complements our existing dealership network," said Peter Lacey, President and CEO of Cervus. "This acquisition enables Cervus to diversify operationally and geographically and provides a strong platform for future growth."

The business of FPSL, FCCL will be integrated into Cervus' Construction and Industrial Equipment segment and will continue to operate under the Frontier Peterbilt Sales and Frontier Collision Center trade names.

Frontier Peterbilt is an award winning exclusive Peterbilt dealership established in 1981 which sells new and used trucks as well as offers premium parts and service to customers throughout Saskatchewan.  The Frontier Collision Centre provides a broad range of services including truck and auto repair, detailing and accessory sales.

About Cervus Equipment Corporation

Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships in Western Canada.  After the acquisition of assets of FPSL, FCCL and FDL, Cervus will operate through 42 dealership locations in Alberta, Saskatchewan and Manitoba. Cervus holds an approximate 60% equity interest in Agriturf Limited, a New Zealand-based corporation that offers authorized John Deere equipment, parts and service.  The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick, Nissan and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".

Forward Looking Information

This press release contains certain forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes forward-looking information relating to the average gross revenue of FPSL and FCCL. Cervus believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Forward-looking information is based on various assumptions. Those assumptions are based on information currently available to Cervus, including the historic performance of their businesses and current business and economic trends. You are cautioned that the preceding list of assumptions is not exhaustive. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Cervus' actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. These risks and uncertainties may include but are not limited to the risks identified in the 2011 Annual Information Form of Cervus Equipment Corporation, under the heading "Risk Factors". Any forward-looking information is made as of the date hereof and, except as required by law. Cervus assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise. 

Peter Lacey - President & CEO
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Email: [email protected]    
 
Randy Muth - Chief Financial Officer
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Email: [email protected]