Cervus Equipment Corporation Completes Acquisition of Five John Deere Dealership Branches in New Zealand

Symbol: CVL (TSX)

CALGARY, Aug. 10, 2012 /CNW/ - Cervus Equipment Corporation ("Cervus") (TSX: CVL) today announced that it has completed the previously announced acquisition of Bayquip Agricultural Limited ("Bayquip") and Fieldpower Northland Limited ("Fieldpower"), and as a result, has acquired a total of five John Deere dealership branches in New Zealand.

"These acquisitions are a significant step in our strategy to consolidate agricultural equipment dealerships in New Zealand," said Graham Drake, President and CEO of Cervus Equipment Corporation. "Also in line with our strategy, our initial focus will be on effective integration and efficient operation of these branches. We believe these acquisitions will be accretive and the five branches will positively contribute to Cervus' overall performance."

Bayquip Acquisition

Cervus purchased the business assets of Bayquip, including three John Deere dealership branches located in Gisborne, Te Puke and Tauranga, for $1,928,186, paying $901,460 in cash and $1,026,726 in common shares of Cervus at a price of $18.901 per share.

Bayquip owns three John Deere dealership branches that sell new and used grounds care parts and equipment as well as offer equipment servicing. The Tauranga branch offers a full range of John Deere grounds care products including residential ride on mowers, commercial mowing equipment and utility vehicles. The Gisborne and Te Puke branches specialize in turf products, agricultural tractors and equipment, and service and parts.

Fieldpower Acquisition

Cervus purchased the business assets of Fieldpower, including two John Deere dealership branches located in Whangarei and Waipapa, for $1,691,888, paid in cash.

Fieldpower owns two John Deere dealerships that sell new and used agricultural, turf and home equipment as well as offer equipment parts and servicing.

About Cervus

Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 56 dealerships located in Western Canada, New Zealand, and Australia.   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 Cervus's belief that these acquisitions will be accretive and the five branches acquired will positively contribute to Cervus' overall performance.  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.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: Cervus Equipment Corporation

Graham Drake - CEO
of Cervus Equipment Corporation
Telephone: [phone]
Fax: [phone]
Email: [email protected] 

Randy Muth - Chief Financial Officer
of Cervus Equipment Corporation
Telephone: [phone]
Fax: [phone]
Email: [email protected]