Rush Enterprises, Inc., operator of North America’s largest network commercial vehicle dealerships, has confirmed that one of its subsidiaries has entered into a joint venture (JV) agreement with the biggest International Truck dealer in Canada, Tallman Group. The subsidiary of Rush Enterprises and Tallman Group will each hold 50 percent interest in the new JV.
Rush Enterprises said that the JV would be operating the commercial vehicle dealership network of Tallman Group in Canada. Tallman Group is reportedly owning and operating 14 International Truck full-service dealerships across Ontario and had gained revenues of CAD 370 million in 2018, delivering nearly 2,000 trucks in the year.
President, Chairman and CEO of Rush Enterprises, W.M. Rush, said the International Truck dealership network built by the Tallman family in Ontario has consistently been one of the best performing dealership groups of International Trucks in North America. Rush believes this JV will combine the operational abilities of Tallman Group and the advanced operating systems developed by Rush Enterprises to offer customers the best-in-class service.
Kevin G. Tallman, Tallman Group CEO, was quoted saying the JV with Rush Enterprises will give Tallman Group access to industry-leading technology and capital, which the company will leverage to accelerate its strategic initiatives in Canada. The company’s cross-border transportation customers will also gain access to the largest commercial vehicle network in the U.S. through this JV, Tallman added.
Rush Enterprises has informed that the JV’s formation is subject to customary closing conditions and the deal is expected to be completed on 25 February 2019. The name of the new joint venture will be Rush Truck Centres of Canada Limited and Rush Enterprises will not be consolidating the JV under its Truck Segment for financial reporting purposes. Its chief executive officer will be Kevin G. Tallman, while Roger Poirier, CFA will be its President.