"Given our successful southwestern expansion of our truck center network, the planned acquisition of Orange County is exciting because it will give Rush its first foothold into the eastern sunbelt states," CEO W. Marvin Rush said.
In addition, the company said it plans to discontinue the operations of its D&D farm and ranch stores and its Michigan John Deere construction equipment dealerships.
The company expects the net loss from discontinued operations will be between $7.8 and $9.0 million, and will be recorded during the fourth quarter. The loss range is dependent upon a number of factors, including but not limited to, the liquidation of inventory, the sale of real estate and costs associated with closing versus selling the operations.
Rush said preliminary plans are to close the D&D facilities in Hockley and Denton, TX, by March 31, and to sell the D&D Seguin store by December 31, 2003. The company has signed a non-binding letter of intent to sell the Michigan John Deere construction equipment dealerships.
"While the divestitures are obviously disappointing, I believe it is in the best interest of our shareholders and our company," Rush said. "By discontinuing these under-performing operations, our core businesses will be strategically poised in our targeted geographical regions."
