Finning International Inc. makes a landmark deal with Kramer Caterpillar

Tony de Sousa will oversee Finning Canada's operations in Saskatchewan from Caterpillar's provincial headquarters in Regina. — Photo courtesy Finning Canada

Finning International Inc. has purchased the operating assets of Saskatchewan’s Caterpillar dealership from Kramer Ltd., establishing Finning Canada’s first presence east of Alberta.

The deal closed as expected on July 1, 2015. The purchase price was approximately $230 million, subject to working capital adjustments. In 2014, the business generated approximately $275 million in revenue.

Tony de Sousa will lead the Saskatchewan operations from the company’s provincial headquarters in Regina. He said the purchase benefits Finning Canada in a number of ways.

“One, it diversifies us into different geographical markets and also into new industries such as potash and uranium,” he said. “And it is also a good thing because customers who already work across the three western provinces will have a consistent service experience.”

The main players in potash in Saskatchewan are Mosaic, Potash Corporation of Saskatchewan and Agrium, and in uranium, Cameco.

Finning’s plan is to move into the new industries in the same manner it analyzes all business opportunities across its territories.

“We have a focused mining group that will work with our folks in Saskatchewan to provide the right solutions to these customers,” said de Sousa.

All 475 employees of Kramer Ltd. have been offered roles at Finning Canada. Kramer employed people across the province in Regina, Saskatoon, Estevan, Swift Current, Battleford, Kindersley and Tisdale, and it operates rental locations in Saskatoon and Regina.

“These experienced employees will make a large contribution to the 5,000 employees we already have at Finning Canada,” said de Sousa.

Prior to the acquisition, Finning served B.C., Alberta, Yukon, the Northwest Territories and a portion of Nunavut.

“It’s been an honour to lead the Kramer Cat dealership for the past 23 years and I am proud of our organization’s many accomplishments,” said Tim Kramer, president of Kramer Ltd., in a news release from Finning Canada. “Having spent considerable time with members of the Finning team, I am confident Finning will be a great addition to the province of Saskatchewan and our employees are joining a successful Canadian business that cares about its employees, customers and the community.”

Developing its presence in Saskatchewan will be the company’s primary focus moving forward. “At this time, our plan is to focus on our customers and on growing the markets that Caterpillar participates in,” said de Sousa.

For more information, visit Finning Canada online at www.finning.ca.