Rush Enterprises and Tallman Group Announce Joint Venture
February 06 2019 - 5:32PM
Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates
the largest network of commercial vehicle dealerships in North
America, announced today that one of its subsidiaries has signed an
agreement to enter into a new joint venture with Tallman Group, the
largest International Truck dealer in Canada.
Rush Enterprises’ subsidiary and Tallman Group will each own 50
percent of the new joint venture entity, which will operate Tallman
Group’s network of commercial vehicle dealerships in Canada.
The formation of the joint venture is subject to customary
closing conditions, but the parties expect the transaction to close
on February 25, 2019. The joint venture will be named Rush
Truck Centres of Canada Limited, and will be led by Kevin G.
Tallman as Chief Executive Officer, and Roger Poirier, CFA as
President. Rush Enterprises does not intend to consolidate the
joint venture as part of its Truck Segment for financial reporting
purposes.
Tallman Group owns and operates a network of 14 International
Truck full-service dealerships throughout the Province of Ontario
including four locations in the Greater Toronto Area, Canada’s
largest commercial vehicle market. Tallman Group achieved
revenues of CAD $370 million and delivered close to 2,000 trucks in
2018, making it the largest International Truck dealer in Canada
and one of the largest International Truck dealer groups in North
America.
“I am extremely excited to announce Rush Enterprises’ joint
venture with Tallman Group,” said W.M. “Rusty” Rush, Chairman,
Chief Executive Officer and President of Rush Enterprises,
Inc. “The Tallman family has built a successful and respected
International Truck dealership network in Ontario, which is
consistently recognized as one of the best performing International
Truck dealership groups in North America. We believe this
joint venture will provide customers with best-in-class service by
combining the advanced operating systems developed by Rush
Enterprises with the operational abilities of the Tallman Group,”
Rush added.
“We are excited to partner with Rush Enterprises, the largest
and most successful truck dealer in North America. This joint
venture will give our company access to capital and
industry-leading technology, which will be leveraged to accelerate
our strategic initiatives within Canada. This joint venture
will also provide our cross-border transportation customers with
access to the largest and most comprehensive commercial vehicle
service network in the United States,” said Kevin G. Tallman, Chief
Executive Officer of Tallman Group. “We look forward to
working with Rush Enterprises’ leadership team and are excited that
this joint venture will enable us to make the investments required
to better serve our customers,” Tallman said.
About Rush Enterprises,
Inc.Rush Enterprises, Inc. is the premier
solutions provider to the commercial vehicle industry. The
company owns and operates Rush Truck Centers, the largest network
of commercial vehicle dealerships in North America, with more than
100 dealership locations. These vehicle centers, strategically
located across 22 states in high traffic areas on or near major
highways throughout the United States, represent truck and bus
manufacturers, including Peterbilt, International, Hino, Isuzu,
Ford, Mitsubishi, IC Bus and Blue Bird. They offer an
integrated approach to meeting customer needs — from sales of new
and used vehicles to aftermarket parts, service and body shop
operations plus financing, insurance, leasing and rental. Rush
Enterprises' operations also provide vehicle upfitting, CNG fuel
systems and vehicle telematics products. Additional
information about Rush Enterprises’ products and services is
available at www.rushenterprises.com. Follow our news on Twitter at
@rushtruckcenter and on Facebook at
facebook.com/rushtruckcenters.
About Tallman Group
Tallman Group has been in business since 1973,
and is the largest International Truck dealer in Canada.
Tallman employs over 600 people and operates 14 locations,
and 6 associate locations in Ontario. In 2018, the company
achieved revenues of CAD $370 million and delivered almost 2,000
trucks. The company is authorized to sell International
Trucks, Isuzu Trucks, Kalmar Ottawa Shunt Trucks, Cobra Trailers,
Fontaine Trailers, Doepker Trailers, and Trout River Trailers.
In addition, the company operates an Idealease franchise that
includes over 1,100 trucks in its lease and rental fleet. In
2015, Tallman Group was named International’s North American Truck
Dealer of the Year. Tallman Group has also been named one of
Canada’s Best Managed Companies for 10 consecutive years.
Certain statements contained herein, including those concerning
the formation of the joint venture are “forward-looking” statements
(as such term is defined in the Private Securities Litigation
Reform Act of 1995). Because such statements include risks
and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Important
factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements
include, but are not limited to, unanticipated difficulties
achieving the customary closing conditions to which the transaction
remains subject, economic conditions in the new and used commercial
vehicle markets, customer relations, relationships with vendors,
one-time events and other factors described herein and in filings
made by Rush Enterprises, Inc. with the Securities and Exchange
Commission.
Contacts:
Rush Enterprises, Inc.Steven L. Keller, (830)-302-5226orTallman
GroupKevin G. Tallman, (905) 671-7600
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