Rush Enterprises, which operates the largest network of commercial vehicle dealerships in North America, announced Wednesday it has finalized its acquisition of certain assets of Summit Truck Group.
The acquisition is the largest in Rush Enterprises history and expands the company's network of Rush Truck Centers to 125 franchised locations in 22 states.
The acquisition was first announced in October when former Summit CEO Justin Fink, along with Southwest International and Kyrish Truck Centers, purchased the former Summit locations in Oklahoma and the AOR around Wichita Falls, Texas.
Rush states its 16 newly acquired International brand commercial vehicle dealerships include five locations in Arkansas, three locations in Kansas, seven locations in Missouri and one location in Tennessee. The acquisition also includes Idealease commercial vehicle leasing operations at eight locations, five within the acquired International dealership locations and three in stand-alone Idealease facilities, a used truck sales facility in Kansas City and a collision center in Memphis. IC Bus, Isuzu and Dennis Eagle franchises are included at certain dealership locations.
Rush also acquired Summit Truck Group’s dealership facility in Wichita Falls, Texas, which the company will operate as a full-service Peterbilt commercial vehicle dealership.
"This acquisition will strengthen our dealership network in several of the most important trucking markets in the United States," says Rusty Rush, chairman, CEO and president, Rush Enterprises. "I am especially thankful to the employees of Summit Truck Group and Rush Enterprises who have worked tirelessly over the last few months to complete this transaction. We could not have completed this acquisition without a lot of work from the great teams at both companies.
He adds, "I have tremendous respect for the excellent customer service reputation that the employees of Summit Truck Group have built over the years, and we are excited to welcome many of them into the Rush Enterprises family."
Rush Enterprises had revenues of $ 4.7 billion in 2020, while the operations associated with the assets acquired from Summit Truck Group had unaudited revenues of approximately $450 million in 2020. The purchase price for the assets of Summit Truck Group was approximately $205 million, excluding the real property associated with the transaction, Rush Enterprises states.
The company will finance approximately $102 million of the purchase price under its floor plan and lease and rental truck financing arrangements. The company also purchased certain real estate owned by affiliates of Summit Truck Group for approximately $56 million. The company says it expects the transaction to be immediately accretive to cash flow and earnings.