Titan Machinery, Fargo, N.D., last week announced it entered into a definitive purchase agreement to acquire ABC Rental, an independent rental company. The acquisition consists of four branch locations in Missoula, Bozeman, and Big Sky, Mont., and Williston, N.D. The locations in Missoula, Williston and Bozeman will consolidate with the existing Titan Machinery Case CE dealerships in their respective markets; leveraging the synergies of both companies. The acquisition is subject to customary conditions to closing and is expected to close on or around April 1.
ABC Rental has been in business for more than 40 years and is one of the leading rental equipment companies in Montana. Roland Schumacher, owner of ABC Rental, will remain with the company.
With locations in southwest Montana as well as western North Dakota, these rental locations are well-positioned to benefit from the increased activity of the surrounding oil, coal and natural gas exploration and extraction in Montana, North and South Dakota as well as Wyoming. In its most recently reported fiscal year ended Dec. 31, 2010, ABC Rental generated revenues of $5.5 million.
“We are excited about our expansion into the construction rental business with the acquisition of ABC Rental,” said David Meyer, Titan Machinery chairman and CEO. “The timing of acquisitions coincides with increased rental demand activity in the industry. Roland Schumacher and his team bring an added rental expertise to the Titan Machinery operating model. We have been preparing for the right opportunity to expand our rental model and with ABC Rental as part of the organization the proper growth platform is now in place in this area of our business.”
Titan Machinery, founded in 1980, owns and operates a network of full-service agricultural and construction equipment stores in the United States. Upon closing of the ABC Rental acquisition and consolidation of the three previously mentioned locations, the Titan Machinery network will consist of 81 dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska and Wyoming, including two outlet stores, representing one or more of the CNH Brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, Kobelco and CNH Capital.
