Rush Enterprises, Inc. (Nasdaq:RUSHA) (Nasdaq:RUSHB) announced that it has acquired certain assets of West Texas Peterbilt, a Peterbilt dealership group with five locations in Texas. The acquisition expands the company's Rush Truck Center commercial vehicle dealership network to 70 locations in 14 states.
The acquisition of West Texas Peterbilt includes dealerships in Amarillo, Lubbock and Odessa that offer Peterbilt trucks, parts and service, a parts and service facility in Dalhart and a parts facility in Hereford. These dealerships will operate in their current locations as Rush Truck Centers. Rush Truck Leasing will operate a PacLease truck rental and leasing franchise at its existing location in Lubbock. The acquisition of West Texas Peterbilt expands the company's representation of Peterbilt in Texas to include the entire state. The purchase price for the assets of West Texas Peterbilt was approximately $25 million.
Rush Enterprises had audited revenues of $1.5 billion for the year ending 2010. West Texas Peterbilt had unaudited revenues of $49 million for the same time period. The company expects the transaction to be accretive to future earnings.
"We are excited to expand our dealership service network across Texas. The acquisition of West Texas Peterbilt will allow us to provide superior support for our customers and continue to expand our offering of innovative solutions that drive efficiencies into their businesses," said W.M. "Rusty" Rush, President and Chief Executive Officer of Rush Enterprises, Inc.
"I have tremendous respect for the Henson family and all of the employees of West Texas Peterbilt who made West Texas Peterbilt a formidable competitor and one of the most respected Peterbilt dealership groups in the country. We are excited to welcome the employees of West Texas Peterbilt into the Rush family and continuing their commitment to excellent service in West Texas," Rusty Rush continued.
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