Vancouver, Wash.-based Western Power & Equipment last week announced it entered into an agreement with CDKnet.com Inc., to exchange Western’s ownership of its operating subsidiary for shares of CDKnet.com common stock. The subsidiary sells, leases rents and services construction and industrial equipment for Case Corp. and approximately 30 other manufacturers.
The transaction will involve CDK’s acquisition of a subsidiary holding approximately $55 million of tangible assets and operations that reported nearly $110 million of total revenue for the year ended July 31, 2002, in exchange for common stock equaling approximately 60 percent of the post-transaction combined entity. There are adjustments to the acquisition consideration if the subsidiary fails to meet certain performance goals for fiscal 2003 and 2004.
Completion of the transaction remains subject to several conditions, including the approval of Western’s stockholders, the receipt of required third-party approvals, additional due diligence and compliance with applicable regulatory requirements.
Western Power & Equipment is No. 96 on the RER 100.