14.02.2011

Strongco buys in the US

Canadian based distributor Strongco has acquired Maine based distributor, Chadwick-BaRoss for around $11.5 million.

Chadwick-BaRoss is a heavy equipment dealer based in Westbrook, Maine, with three branches in Maine and one in each of New Hampshire and Massachusetts. It distributes Volvo construction equipment, Power Screen and a variety of lumber and scrap handling equipment.

The transaction value is based on the net book value of the company, Strongco has obtained a $5 million term loan through its current bank to help fund purchase. Strongco is a Grove, National Crane, Skyjack and Fassi dealer across Canada.

Robert Dryburgh, Strongco’s chief executive said: "The acquisition is in line with our strategy of building scale, in part by acquiring dealerships closely associated with the major brands represented by Strongco and located in regions that are geographically contiguous with our current markets."

"I am particularly pleased that Stuart Welch, who has led Chadwick-BaRoss for several years, has agreed to stay on to lead this business when it becomes part of Strongco.”

"Given the signs of recovery in the U.S. and current exchange rates, the timing of this acquisition is opportune and enables Strongco to continue to build on our relationship with Volvo and also to establish a platform for future growth."