July 26, 2013
Rush Enterprises Inc. said Wednesday the company has entered into purchase agreements with two dealer groups to acquire locations in Kansas, Missouri and Virginia.
Rush signed a definitive asset purchase agreement with Midwest Truck Sales to acquire locations in St. Peters and St. Louis, Missouri and Olathe, Kansas. The Missouri operations offer truck sales, parts and service for International trucks and the Kansas location offers truck sales, parts and service capabilities for Hino and Isuzu trucks and parts and service support for Mitsubishi Fuso trucks.
The company also signed a definitive asset purchase agreement with TransAuthority to acquire full service International dealerships in Richmond and Suffolk, Virginia and parts and service locations in Fredericksburg and Chester, Virginia.
W. M. “Rusty” Rush, Chief Executive Officer and President of Rush Enterprises, Inc. says the company plans to complete the Midwest Truck Sales acquisition by the end of this month and the Virginia acquisition in the fall.
“When we complete these acquisitions, our Rush Truck Centers network will consist of 88 locations in 18 states,” said Rush. The new acquisitions will also expand the Company’s Rush Truck Leasing capabilities with Idealease franchises in Missouri and Virginia. These acquisitions are a key component of our growth strategy and represent significant entry into major truck markets, providing our customers with expanded service locations along the I-95 corridor and into the Midwestern United States. Importantly, these acquisitions also continue our growth plan with Navistar, expanding the Company’s Navistar Division to 32 Rush Truck Centers and two collision centers in eight states.”
In May the company acquired certain assets of Piedmont International Trucks and now operates International and Idealease locations in Asheville, Hickory and Statesville, North Carolina.
Earlier this month, Rush acquired Ford and Mitsubishi Fuso truck franchises in Cincinnati, Ohio, expanding the product offerings at Rush Truck Center – Cincinnati.
“We continue to expand our capabilities in existing markets. We relocated our full service dealership in Ardmore, Oklahoma to a newly constructed facility in April,” Rush says. “This move doubled our service capacity in this market and expanded our natural gas and mobile service capabilities. Similarly, we are in various stages of construction on new facilities in California, Colorado, Florida, Ohio and Texas.”
Last week, the company announced net income slid to $5.6 million in the second quarter, down significantly from the $17.4 million posted last year.