Texada Software, Guelph, Ontario, Canada, following the recent announcement of an exclusive distribution agreement with LiuGong Construction Machinery for the Houston marketplace and the closing of a $25 million refinancing of its equipment rental operations in Southern California, has entered into a non-binding agreement to acquire selected operating assets of Bane Machinery Houston LP, Houston. The transaction will be completed by a subsidiary of Noble Iron, a wholly owned U.S. subsidiary of the company.
“This transaction will mark our entry into a second major market in the U.S. The business will operate a full rental and distribution location serving southeast Texas from our leased facility located at 505 Rankin Road, Houston, Texas. This extension of our operational footprint will allow Noble to expand upon its strong relationship with the Terex Corp. and our exclusive distribution of LiuGong Construction Machinery,” said Willie Swisher, CEO of Texada and Noble.
“As we continue to expand the Noble brand into the construction equipment industry, our overriding goal is to seek out and execute on opportunities that are conducive to the expansion of our brand, provide our customers a remarkable experience and that create exceptional value to our stakeholders,” Swisher said.
The agreement is for the acquisition of certain operating assets of Bane Machinery. Along with the purchase of the Bane assets, including earthmoving equipment, Noble is expected to retain all employees and Bane's active customer list. In conjunction with the closing of the agreement, Noble will enter into a lease on the property currently occupied by Bane Machinery's Houston operations. The total consideration for the acquisition of the operating assets is expected to be $1.9 million. None of Bane Machinery’s liabilities will be assumed as part of the transaction.
The agreement is subject to certain customary conditions, including the completion of satisfactory due diligence, the entering into an acceptable real estate lease and financing, satisfactory to Texada. It is anticipated that the agreement will close on or before July 20, 2012.