KRAMER SOLD
$230M deal for Sask. institution
Finning International Inc. buys iconic Saskatchewan firm for $230 million.
Kramer Ltd., a name synonymous with the development of the Saskatchewan economy for the last 70 years, will soon become part of Saskatchewan history.
Finning International Inc., the largest Caterpillar dealer in the world, has purchased Kramer Ltd. for $230 million, the Vancouverbased company announced in Regina Wednesday.
Tim Kramer, the grandson of company founder Robert Kramer and son of former company president Don Kramer, said the decision to sell to Finning was the right thing to do for the family and the company.
“It’s just time,” said Tim Kramer, who has been president of Kramer Ltd. for the past 23 years. “When I first came into the business back in the ’70s, Dad always taught me that everything is for sale ... and the time is right.”
Following the news conference, Kramer said his father, Don, and mother, Claire, are happy with the decision. “Dad and I are very satisfied with what we’re doing. It’s a very good decision for Saskatchewan and a very good decision for Dad, Mom and I.”
He said Finning shares Kramer’s views as an employer and a corporate citizen and will keep all 475 employees in the new company. “When we started this whole deal, the first (item) on the table was job security for my people, (their) positions and a long-term commitment from Finning to keep them on. They were absolutely No. 1 in our minds.”
Scott Thomson, president and CEO of Finning International, agreed Kramer and Finning have similar corporate cultures, with a strong commitment to their employees and communities. “From an employee perspective, there’s a very similar cultural aspect to Finning and Kramer. I think our employees and the Kramer employees will fit well together.”
Both companies are “customer-focused,” Thomson added. “A lot our customers are Kramer customers, so I think that will make the integration of customer support very seamless.”
Finally, Finning was attracted to Kramer because of the growth potential of the Saskatchewan economy. “The growth opportunities in Saskatchewan are very significant ... potash, uranium, agriculture. There’s a great future ahead of us here in Saskatchewan and we want to participate and help build the legacy of the Kramer family.”
Finning will become the approved Caterpillar heavy equipment dealer for Saskatchewan in July, complementing Finning’s customer base and employees across B.C., Alberta and the three territories.
Tony de Sousa, vice-president of Finning Saskatchewan, who will be based at the company’s Saskatchewan headquarters in Regina, paid tribute to the Kramer family’s legacy of business and philanthropic achievement. “I want to recognize Don, Claire, Tim and the entire Kramer family for building a remarkable legacy. I’ve known Tim Kramer for a number of years and I have great respect for the business he’s run, the employees he’s led and the customers he’s served. I’m very proud and honoured to have the opportunity to lead Finning’s entry into Saskatchewan.”
Finning International was founded in Vancouver in 1933 by Earl B. Finning and has about 5,200 employees in 50 locations in Western Canada and 14,000 globally, serving customers in mining, construction, petroleum, forestry, agriculture and power systems. In 2014, publicly traded Finning generated revenue of $3.6 billion in Canada and $6.9 billion globally.
Kramer was founded in 1944 by Robert (Bob) A. Kramer and serves customers in a range of industries, including construction, mining, oil and gas, forestry and agriculture. In 2014, privately held Kramer generated approximately $275 million in revenue. Kramer operates seven dealership operations in Regina, Saskatoon, Estevan, Swift Current, North Battleford, Kindersley and Tisdale, as well as rental locations in Regina and Saskatoon.