Canada's Toromont to buy Caterpillar dealer Hewitt for C$1.02 billion
Toromont Industries Ltd (TIH.TO) said on Monday it would buy privately held Hewitt Group for about C$1.02 billion ($818 million) in cash and shares to expand its network of heavy equipment dealers in eastern Canada.
Through the deal, Concord, Ontario-based Toromont will acquire Hewitt’s 45 Caterpillar (CAT.N) dealerships in Quebec, the Maritimes, Labrador West and Ontario, increasing the number of Toromont’s heavy equipment dealerships to 120.
Toromont will pay Hewitt C$917.7 million in cash and 2.25 million Toromont shares, the company said.
Toromont said the acquisition, which is expected to close by mid-October, will add to net earnings next year.
The company will fund the deal through cash on hand and debt.
TD Securities, CIBC Capital Markets and BMO Capital Markets were Toromont’s financial advisers, while National Bank Financial advised Hewitt.