Rush Enterprises Completes Investment in Rush Truck Centres of Canada Limited

Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of commercial vehicle dealerships in North America, announced today that one of its subsidiaries has acquired 50 percent of the equity interest in Rush Truck Centres of Canada Limited, which recently acquired the operating assets of Tallman Group, the largest International Truck dealer in Canada.

Rush Truck Centres of Canada Limited will operate Tallman Group’s network of 14 International Truck full-service dealerships throughout the Province of Ontario.  Tallman Group achieved revenues of CAD $370 million and delivered close to 2,000 commercial vehicles in 2018, making it the largest International Truck dealer in Canada and one of the largest International Truck dealer groups in North America.  Rush Truck Centres of Canada Limited will be led by Kevin G. Tallman as Chief Executive Officer and Roger Poirier, CFA, as President. Rush Enterprises will account for this transaction as an equity method investment for financial reporting purposes.

“I am pleased to announce the closing of our previously announced investment in Rush Truck Centres of Canada Limited,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc.  “This transaction represents Rush Enterprises’ first investment in dealership operations outside of the United States, and it would not have been possible without the right partner.  Tallman Group is consistently recognized as one of the best performing International Truck dealership groups in North America, and we believe they are the ideal partner for our first foreign investment,” said Rush.

“We will provide our customers in Canada with best-in-class service by combining Rush Enterprises’ advanced dealership operating systems with Tallman Group’s operational expertise. However, please note that it will take time to integrate the dealership operating systems we use in the United States into Rush Truck Centres of Canada.  I would ask existing cross-border service customers of Tallman Groupin Canada and Rush Truck Centers in the United States to be patient as we integrate operations to provide you with seamless cross-border service.  For example, while our customers should still expect the same great service they are accustomed to receiving at all of our locations, initially, we will not have Tallman Group’s customer information integrated into our operating systems in the United States, or vice versa,” Rush explained.

“Ultimately, Rush Truck Centres of Canada will provide our cross-border transportation customers with access to the largest and most comprehensive franchised commercial vehicle service network in the United States,” said Kevin G. Tallman, Chief Executive Officer of Rush Truck Centres of Canada.  “We are excited about welcoming Rush Enterprises’ customers to our locations throughout Ontario and look forward to working with Rush Enterprises’ leadership team to ensure we are providing our customers with world class service,” Tallman added.