Titan Machinery purchases Jaycox Implement and its three agricultural dealerships in Minnesota and Iowa
According to a press release, the acquisition is supposed to be finalized in December “and be immediately accretive to earnings per diluted share”.
Founded in 1980, West Fargo-based Titan Machinery owns and operates a network of full-service agriculture and construction equipment dealers in North America and Europe, including branches in the United States in Colorado, the Iowa, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. , Wisconsin and Wyoming, and European stores in Bulgaria, Germany, Romania, Serbia and Ukraine. Titan sites each feature one or more CNH Industrial brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, and CNH Industrial Capital.
In a statement, David Meyer, president and CEO of Titan Machinery, said Jaycox has been in business since 1956 and deals with Case IH equipment. The company’s website says it “carries Bobcat, Kubota, and many short lines as well.” The company has dealerships in the Minnesota cities of Worthington and Luverne, as well as one in Lake Park, Iowa.
“The acquisition of the Jaycox dealer network in southwest Minnesota and northwest Iowa is a perfect addition to our existing footprint in the heart of this highly productive region,” he said.
The move comes less than five years after Titan Machinery closed 12 stores to move away from a “strong store” concept and one more focused on regional expert teams. Titan Machinery’s website now lists 15 in Minnesota, four in Montana, 15 in Nebraska, 16 in North Dakota, 10 in South Dakota, and one in Wisconsin.
Meyer said Jaycox in particular is known for its talented and experienced employees and for its emphasis on customer service.
“We aim to build on this legacy with our additional resources and look forward to integrating their team and clients into the Titan family,” he said.
According to a statement from Titan, Jaycox during the 12-month period ending June 30, 2021, generated revenue of approximately $ 91 million.
In August, Titan Machinery reported profits for the second quarter of fiscal 2022, which ended July 31, 2021, at $ 377.6 million, compared to $ 303.5 million in the second quarter of the year. fiscal year 2021. Equipment sales, parts sales and service revenues increased, while rental revenues were down due to “a decrease in inventory rentals, a reduced rental fleet and of the January 2021 divestment of the company’s construction stores in Arizona ”. The company’s three segments – agriculture, construction and international – all posted higher revenue compared to the same quarter a year earlier.
The income statement also showed that revenue increased in the first six months of fiscal 2022 compared to the same period of fiscal 2021, and Meyer had an optimistic note for the future of the business.
“The current environment gives us the opportunity to showcase the improvements we have made to our business over the past few years. Our inventory rotations continue to increase and we receive inventory shipments that allow us to exceed our revenue targets, ”he said in the income statement.