WEST FARGO, North Dakota — Titan Machinery has announced it will purchase Jaycox Implement Inc., which consists of three full-line Case IH agriculture dealerships in Minnesota and Iowa.
According to a news release, the acquisition is supposed close in December "and be immediately accretive to earning per diluted share."
Founded in 1980, West Fargo-based Titan Machinery owns and operates a network of full-service agricultural and construction equipment dealer locations in North American and Europe, including U.S. locations in Colorado, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming, and European stores in Bulgaria, Germany, Romania, Serbia and Ukraine. Titan's locations each feature one or more CNH Industrial Brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, and CNH Industrial Capital.
In a statement, David Meyer, Titan Machinery's chairman and CEO, said Jaycox has been in business since 1956 and handles Case IH equipment. The company website says it "also carries Bobcat, Kubota, as well as many short-lines." The company has dealerships in the Minnesota towns of Worthington and Luverne, as well as one in Lake Park, Iowa.
“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," he said.
The move comes less than five years after Titan Machinery shuttered 12 stores to move away from a "strong store" concept and into one more focused on regional expert teams. The Titan Machinery website now lists among its locations 15 in Minnesota, four in Montana, 15 in Nebraska, 16 in North Dakota, 10 in South Dakota and one in Wisconsin.
"We aim to build upon that legacy with our added resources and look forward to integrating their team and customers into the Titan family,” he said.
According to a release from Titan, Jaycox in the 12-month period ending June 30, 2021, generated revenue of approximately $91 million.
In August, Titan Machinery announced earnings for the second quarter of fiscal 2022, which ended July 31, 2021, as $377.6 million, compared to $303.5 million in the second quarter of fiscal 2021. Equipment sales, parts sales and revenue from service were up, while rental revenue was down due to "a decrease in inventory rentals, a reduced rental fleet and the January 2021 divestiture of the company's construction stores in Arizona." The company's three segments — agriculture, construction and international — all posted higher revenue numbers from the same quarter a year prior.
The earnings statement also said revenue was up in the first six months of fiscal 2022 over the same period in fiscal 2021, and Meyer had an optimistic note for the company's future.
"The current environment is providing us the opportunity to showcase the improvements we've made to our business over the past several years. Our inventory turns are continuing to trend upward and we are receiving inventory shipments that are allowing us to surpass our revenue targets," he said in the earnings statement.