TORONTO, ONTARIO--(Marketwired - Oct. 22, 2017) - Toromont Industries Ltd. (TSX:TIH) today announced that it has received a no-action letter from the Canadian Commissioner of Competition under the Competition Act (Canada) in respect of its previously announced acquisition of the businesses and net operating assets of the Hewitt Group of companies. Receipt of the no-action letter satisfies the regulatory approval condition under the definitive agreement between Toromont and the Hewitt Group of companies. As a consequence of the receipt of this approval, Toromont now expects to close the transaction after close of business on Friday, October 27, 2017.
"We appreciate the hard work and support of the Hewitt team in helping us reach this milestone and in preparing for the transition, while continuing to operate Hewitt's day-to-day business and serve its customers. We look forward to continuing to work closely with the Hewitt team to ensure a smooth integration of the businesses following closing," said Scott Medhurst, Toromont President and CEO.
Until closing, it will be business as usual for both independent businesses. It is expected that the work completed to date, will lead to a smooth transition. After closing, customers and other stakeholders should expect to see uninterrupted service delivery as Toromont begins to rebrand and integrate operations.
Hewitt is the authorized Caterpillar Dealer for the province of Québec and Western Labrador, and, since 1995, through its subsidiary, Atlantic Tractors & Equipment Ltd., is also the Cat Dealer for the Maritime Provinces. With headquarters in Pointe-Claire and 45 branches, the Hewitt Group sells, rents and services the full line of Caterpillar products through four divisions: Heavy Equipment, Material Handling, Energy and Truck. Hewitt's other subsidiaries are: Hewitt Material Handling Inc. (Ontario), Hewitt Rentals Inc. (Québec, Western Labrador and the Maritimes), Montréal Hydraulique Inc. and SITECH QM (Maritimes). The Company is also the dealer for Maschinenbau Kiel GmbH (MaK) for Québec, the Maritimes, and the Eastern seaboard of the United States, from Maine to Virginia. The Hewitt Group employs more than 2,000 people across Eastern Canada.
Toromont Industries Ltd. operates through two business segments: The Equipment Group and CIMCO. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory in addition to industry leading rental operations and a growing agricultural equipment business. CIMCO is a market leader in the design, engineering, fabrication and installation of industrial and recreational refrigeration systems. Both segments offer comprehensive product support capabilities. This press release and more information about Toromont Industries can be found at www.toromont.com.
This press release contains forward-looking statements about the closing of the proposed acquisition by Toromont Industries Ltd ("Toromont") of the business of the Hewitt Group of companies. Forward-looking statements reflect current estimates, beliefs and assumptions, which are based on Toromont's perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Toromont's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Toromont can give no assurance that such estimates, beliefs and assumptions will prove to be correct.
Numerous risks and uncertainties could cause the actual results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited to: business cycles, including general economic conditions in the countries in which Toromont operates; commodity price changes, including changes in the price of precious and base metals; changes in foreign exchange rates, including the Cdn$/US$ exchange rate; the termination of distribution or original equipment manufacturer agreements; equipment product acceptance and availability of supply; increased competition; credit of third parties; additional costs associated with warranties and maintenance contracts; changes in interest rates; the availability of financing; potential environmental liabilities of the business to be acquired and changes to environmental regulation; failure to attract and retain key employees; damage to the reputation of Caterpillar, product quality and product safety risks which could expose Toromont to product liability claims and negative publicity; new, or changes to current, federal and provincial laws, rules and regulations; and any requirement of Toromont to make contributions to the registered funded defined benefit pension plans, postemployment benefits plan or the multi-employer pension plans in which it participates or will participate upon assuming Hewitt's obligations thereunder in excess of those currently contemplated. Readers are cautioned that the foregoing list of factors is not exhaustive.
Any of the above mentioned risks and uncertainties could cause or contribute to actual results that are materially different from those expressed or implied in the forward-looking statements included in this press release. For a further description of certain risks and uncertainties and other factors that could cause or contribute to actual results that are materially different, see the risks and uncertainties set out in the "Risks and Risk Management" and "Outlook" sections of Toromont's most recent annual or interim Management Discussion and Analysis, as filed with Canadian securities regulators at www.sedar.com or at www.toromont.com. Other factors, risks and uncertainties not presently known to Toromont or that Toromont currently believes are not material could also cause actual results or events to differ materially from those expressed or implied by statements containing forward-looking information.
There can be no assurance that the proposed acquisition will occur on time or at all. The proposed acquisition remains subject to the fulfillment of certain conditions, and there can be no assurance that any such conditions will be met. The proposed acquisition could be modified, restructured or terminated. There can be no assurance that debt financing for the proposed acquisition will be completed.
Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Toromont's expectations only as of the date of this news release. Toromont disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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