Titan Machinery Inc. Announces Acquisition of Jaycox Implement, Inc.

Rhea-AI Summary

Titan Machinery Inc. (Nasdaq: TITN) has signed a definitive purchase agreement to acquire Jaycox Implement, Inc., consisting of three Case IH agriculture dealerships in Minnesota and Iowa. Jaycox generated approximately $91 million in revenue over the past twelve months. The acquisition is set to close in December 2021 and is expected to be immediately accretive to earnings per diluted share. This strategic move aims to enhance Titan's presence in a productive agricultural region and leverage Jaycox's established customer service reputation.

Positive

• Acquisition of Jaycox expected to be immediately accretive to earnings per diluted share.
• Strategic expansion into southwestern Minnesota and northwestern Iowa.
• Jaycox's established customer service reputation and experienced team enhance Titan's market position.

Negative

• None.

WEST FARGO, N.D., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, announced today that it has entered into a definitive purchase agreement to acquire the assets of Jaycox Implement, Inc. (“Jaycox”), which consists of three full-line Case IH agriculture dealerships located in Worthington, MN, Luverne, MN, and Lake Park, IA. In the trailing twelve-month period ended June 30, 2021, Jaycox generated revenue of approximately $91 million. The acquisition is expected to close in December, 2021 and be immediately accretive to earnings per diluted share.

David Meyer, Titan Machinery’s Chairman and Chief Executive Officer, stated, “The acquisition of the Jaycox dealership network in southwestern Minnesota and northwestern Iowa is a perfect complement to our existing footprint in the heart of this highly productive region. Jaycox has been a fixture in this market since 1956, has a talented and experienced team of employees, excellent population of Case IH equipment and is well-known for their focus on customer service. We aim to build upon that legacy with our added resources and look forward to integrating their team and customers into the Titan family.”

About Titan Machinery Inc.

Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, owns and operates a network of full service agricultural and construction equipment dealer locations in North America and Europe. The network consists of US locations in Colorado, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming and its European stores are located in Bulgaria, Germany, Romania, Serbia and Ukraine. The Titan Machinery locations represent one or more of the CNH Industrial Brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, and CNH Industrial Capital. Additional information about Titan Machinery Inc. can be found at www.titanmachinery.com.

Forward Looking Statements

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “potential,” “believe,” “estimate,” “expect,” “intend,” “may,” “could,” “will,” “plan,” “anticipate,” and similar words and expressions are intended to identify forward-looking statements. These statements are based upon the current beliefs and expectations of our management. Forward-looking statements made in this release, which may include statements regarding Agriculture, Construction, and International segment initiatives and improvements, segment revenue realization, growth and profitability expectations, inventory expectations, leverage expectations, agricultural and construction equipment industry conditions and trends, and modeling assumptions and expected results of operations for the fiscal year ending January 31, 2022, involve known and unknown risks and uncertainties that may cause Titan Machinery’s actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, the duration, scope and impact of the COVID-19 pandemic on the Company's operations, a substantial dependence on a single distributor, the continued availability of organic growth and acquisition opportunities, potential difficulties integrating acquired stores, industry supply levels, fluctuating agriculture and construction industry economic conditions, the success of recently implemented initiatives within the Company’s operating segments, the uncertainty and fluctuating conditions in the capital and credit markets, difficulties in conducting international operations, foreign currency risks, governmental agriculture policies, seasonal fluctuations, the ability of the Company to reduce inventory levels, weather conditions, disruption in receiving ample inventory financing, and increased competition in the geographic areas served. These and other risks are more fully described in Titan Machinery’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Titan Machinery conducts its business in a highly competitive and rapidly changing environment. Accordingly, new risk factors may arise. It is not possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on Titan Machinery’s business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Other than required by law, Titan Machinery disclaims any obligation to update such factors or to publicly announce results of revisions to any of the forward-looking statements contained in this release to reflect future events or developments.

Investor Relations Contact:
ICR, Inc.
Jeff Sonnek, jeff.sonnek@icrinc.com.
Managing Director
646-277-1263

FAQ

What is Titan Machinery's recent acquisition about?

Titan Machinery is acquiring the assets of Jaycox Implement, which includes three Case IH agriculture dealerships in Minnesota and Iowa.

How much revenue did Jaycox generate before the acquisition?

Jaycox Implement generated approximately $91 million in revenue over the trailing twelve months ending June 30, 2021.

When is the acquisition of Jaycox expected to close?

The acquisition is expected to close in December 2021.

How will the acquisition impact Titan Machinery's earnings?

The acquisition is anticipated to be immediately accretive to Titan Machinery's earnings per diluted share.

Why is this acquisition significant for Titan Machinery?

The acquisition allows Titan Machinery to strengthen its market presence in a highly productive agricultural region and build on Jaycox's legacy of customer service.