Finning International, the world’s largest Caterpillar dealership, is about to get larger with an agreement to acquire the operating assets of Kramer Ltd., Caterpillar dealer in Saskatchewan, for about $230 million, subject to working capital adjustments. Kramer Ltd. generated about $275 million in revenue. Finning will become the approved Caterpillar dealer in Saskatchewan in July of this year, subject to customary closing conditions.
The Kramer family had run the dealership in Saskatchewan for 70 years. The acquisition expands Finning’s Canadian territory to include British Columbia, Alberta, Yukon, Northwest Territories and part of Nunavut, along with Saskatchewan. The two companies already share common customers who operate across these adjacent territories and, Finning said, will benefit from the continuity and support of a single dealer, improved equipment and parts availability, product support and access to Finning’s extensive 50-location branch network.
Finning also has Caterpillar’s largest North American rental program, ranked No. 10 on the RER 100. Kramer has Cat Rental Stores in Regina and Saskatoon, Saskatchewan.
The acquisition brings Finning into sectors such as the potash and uranium industries. Finning has named Tony de Sousa the executive to lead Finning Saskatchewan, which will remain headquartered in Regina. De Sousa is a 39-year Finning veteran.
“Expanding Finning’s Western Canadian operations into Saskatchewan is a great strategic fit and represents a compelling growth opportunity for our company, employees, customers and shareholders,” said Scott Thomson, president and CEO of Finning International. “We have great respect for the Kramer family legacy and everything they have achieved. We will build on their strong heritage by growing the business, providing our customers with a terrific experience and contributing to communities in Saskatchewan.”
Headquartered in Vancouver, B.C., Finning operates in western Canada, Chile, Argentina, Bolivia, Uruguay, the United Kingdom and Ireland.