Rush Enterprises Completes Investment in Rush Truck Centres of Canada Limited
February 25 2019 - 6:03PM
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 acquired
50 percent of the equity interest in Rush Truck Centres of Canada
Limited, which recently acquired the operating assets of Tallman
Group, the largest International Truck dealer in Canada.
Rush Truck Centres of Canada Limited will operate Tallman
Group’s network of 14 International Truck full-service dealerships
throughout the Province of Ontario. Tallman Group achieved
revenues of CAD $370 million and delivered close to 2,000
commercial vehicles in 2018, making it the largest International
Truck dealer in Canada and one of the largest International Truck
dealer groups in North America. Rush Truck Centres of Canada
Limited will be led by Kevin G. Tallman as Chief Executive Officer
and Roger Poirier, CFA, as President. Rush Enterprises will account
for this transaction as an equity method investment for financial
reporting purposes.
“I am pleased to announce the closing of our previously
announced investment in Rush Truck Centres of Canada Limited,” said
W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President
of Rush Enterprises, Inc. “This transaction represents Rush
Enterprises’ first investment in dealership operations outside of
the United States, and it would not have been possible without the
right partner. Tallman Group is consistently recognized as
one of the best performing International Truck dealership groups in
North America, and we believe they are the ideal partner for our
first foreign investment,” said Rush.
“We will provide our customers in Canada with best-in-class
service by combining Rush Enterprises’ advanced dealership
operating systems with Tallman Group’s operational expertise.
However, please note that it will take time to integrate the
dealership operating systems we use in the United States into Rush
Truck Centres of Canada. I would ask existing cross-border
service customers of Tallman Group in Canada and Rush Truck Centers
in the United States to be patient as we integrate operations to
provide you with seamless cross-border service. For example,
while our customers should still expect the same great service they
are accustomed to receiving at all of our locations, initially, we
will not have Tallman Group’s customer information integrated into
our operating systems in the United States, or vice versa,” Rush
explained.
“Ultimately, Rush Truck Centres of Canada will provide our
cross-border transportation customers with access to the largest
and most comprehensive franchised commercial vehicle service
network in the United States,” said Kevin G. Tallman, Chief
Executive Officer of Rush Truck Centres of Canada. “We are
excited about welcoming Rush Enterprises’ customers to our
locations throughout Ontario and look forward to working with Rush
Enterprises’ leadership team to ensure we are providing our
customers with world class service,” Tallman added.
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 Rush Truck Centres of Canada
Limited
Rush Truck Centres of Canada Limited operates the
largest International Truck dealership network in Canada.
Rush Truck Centres of Canada Limited is owned by a subsidiary of
Rush Enterprises, Inc. and the former dealer principles of Tallman
Group, which previously owned and operated the dealership assets
that now comprise Rush Truck Centres of Canada Limited. The company
employs over 600 people and operates 14 locations and 6 associate
locations in Ontario. In 2018, Tallman Group achieved
revenues of CAD $370 million and delivered almost 2,000 commercial
vehicles. The company is authorized to sell commercial
vehicles manufactured by International and Isuzu. 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 integrating the operating
systems of Rush Enterprises, Inc. with Rush Truck Centres of Canada
Limited, economic conditions in the new and used commercial vehicle
markets, customer relations, relationships with manufacturers and
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) 302-5226orRush
Truck Centres of Canada LimitedKevin G. Tallman, (905)
671-7600
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