Rush Enterprises Inc. says certain of its subsidiaries have entered into agreements to purchase certain assets of CIT, Inc., which does business as Chicago International Trucks, Mcgrenho L.L.C., which does business as Indy Truck Sales, and Indiana Mack Leasing, LLC, along with the membership interests of Idealease of Chicago, LLC.
The acquisition includes International commercial truck dealerships and Idealease commercial vehicle rental and leasing businesses in Carol Stream, Chicago, Grayslake, Huntley, Joliet, Kankakee and Ottawa, Illinois, and Brazil, Gary and Indianapolis, Indiana, which, collectively, had unaudited revenues of approximately $405 million in 2012.
The proposed acquisition is expected to close, subject to customary closing conditions, in the first quarter of 2014. When complete, the acquisition will expand the company's contiguous network of Rush Truck Centers in the Midwest.
The company anticipates that the purchase price for the assets will be paid in cash and partially financed under the company's commercial vehicle borrowing and accounts receivable financing arrangements.
"This acquisition is a significant opportunity to expand our service network in the Midwestern United States, providing strategic market coverage for truck owners operating in this region," said W. M. "Rusty" Rush, Chairman, CEO and President of Rush Enterprises, Inc.
"Chicago International Trucks and Indy Truck Sales are respected dealer organizations, and we are excited to add these operations to our Rush Truck Center network. We look forward to continuing the standard of service excellence they have established in these markets. We are also pleased to expand our relationship with Navistar by representing reputable brands such as International and Idealease in this region of the country."