FARGO, N.D. — Fargo, N.D.-based RDO Equipment recently entered into an agreement to sell the assets of its Riverside, Calif., truck dealership. Details of the transaction, such as to whom RDO is being sold, were not disclosed. The transaction is expected to close in the company's fiscal third quarter.
Though the company did not disclose specific terms of the transaction, it did state that the assets are being sold at a price that exceeds current carrying value. The company also has settled manufacturer sponsored debt that originated in 1999 as part of the its acquisition of the Riverside, Calif. dealership at an agreed upon discount.
This transaction will complete the company's fourth quarter of fiscal 2001 plan to divest itself of the majority of its heavy-truck division. The dealership divestitures were the cornerstone of the company's plan to reduce its cost structure and focus efforts on the core business lines of construction and agricultural equipment sales and service.
“I'm pleased to put closure on this chapter in the life of RDO Equipment Co.,” said Ronald Offutt, chairman and CEO. “The sale will allow us to focus all our attention on improving and growing our agricultural and construction equipment dealerships.”
RDO Equipment specializes in the distribution, sale, service, rental and finance of equipment and trucks to the agricultural, construction, manufacturing, transportation and warehousing industries, including one of the largest networks of John Deere construction and agricultural stores in North America.
