Toromont Industries Ltd. (TMTNF, TIH.T) said Monday it will buy Hewitt Equipment in a cash-and-stock deal worth about $1.02 billion Canadian dollars (about $818 million), a deal that will add 45 locations to Toromont's network of dealerships selling equipment from Caterpillar Inc. (CAT).
The privately held Hewitt is an authorized Caterpillar and MaK dealer in Eastern Canada. Toromont, which provides industrial equipment and support services, said the deal will especially allow it to expand in Quebec.
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Under the terms of the deal, Toromont will pay C$917.7 million plus 2.25 million Toromont shares, a value of C$100 million based on a 10-day average share price.
Toromont, which said the Hewitt deal would be the largest in its history, expects the transaction to close in October, pending regulatory approval.
Shares in Toromont are up 6% so far this year and closed on Friday at C$44.90.
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(END) Dow Jones Newswires
August 28, 2017 08:56 ET (12:56 GMT)