SAN ANTONIO, May 26, 2010 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (Nasdaq:RUSHA) (Nasdaq:RUSHB), which operates the largest network of commercial vehicle dealerships in North America and two John Deere construction equipment dealerships in southeast Texas, today announced that it has acquired certain assets of Lake City Companies, LLC and certain of its subsidiaries and affiliates (collectively, "Lake City International"), which operates a commercial truck and bus sales, service, parts, finance and leasing business representing multiple brands, including International, IC Bus, Autocar, Mitsubishi Fuso, Kalmar, Workhorse, and Idealease truck leasing.
Rush had audited revenues of $1.2 billion for the year ending 2009 while Lake City International had unaudited revenues of $121.9 million. The purchase price for the assets of Lake City International was approximately $38.7 million for assets and goodwill less a $2.0 million payment from an affiliate of Lake City International to Rush for assuming contingent liabilities. Rush Enterprises will finance approximately $21.0 million of the purchase price under its floor plan, accounts receivable, and lease and rental truck financing arrangements. The Company intends to purchase the real estate, owned by an affiliate of Lake City International, in a separate transaction for approximately $34.5 million. The Company expects to purchase the real estate no later than June 30, 2010, and to finance a portion of the purchase price of the real estate at the time of closing. The Company expects the transaction to be accretive to future earnings.
The acquisition expands the Company's contiguous network of Rush Truck Centers to 60 locations in 14 states. The newly acquired dealerships include five locations in Utah, five locations in Idaho and one location in Oregon. All will operate in their current locations as Rush Truck Centers. They offer International heavy- and medium-duty trucks, Autocar trucks, Mitsubishi Fuso medium-duty trucks, IC buses, Kalmar yard trucks and Workhorse chassis in addition to parts, service, body shop, financing and insurance capabilities. Rush Truck Leasing will operate Idealease truck rental and leasing franchises at existing locations in Salt Lake City, Utah, and Boise, Idaho.