SLC construction equipment dealer divests business
A Salt Lake City construction equipment dealer has sold its John Deere and Hitachi business to Honnen Equipment Co. of Commerce City, Colo. Terms of the sale weren’t disclosed. Scott Machinery, a construction equipment dealer that had eight locations in Idaho, Wyoming, and Utah including one in Orem, divested part of its business to focus exclusively on selling and leasing new and used Bobcat compact industrial, construction and agri-business equipment, and provide parts and repair services. It will also continue to be an Ingersoll-Rand equipment dealer.
Jeffrey Scott, the company’s vice president and Wasatch division manager, said the move is part of a growing trend of consolidation among construction equipment dealerships nationwide.
Proceeds from the sale will be used to recapitalize the business, he said.
Even though Scott Machinery’s sales declined in 2008 because of the housing slump and ongoing recession, Scott said the company hopes its business will improve with its move to being an exclusive Bobcat dealer.
"The compact equipment business segment is a strong and growing segment in the construction industry," Scott said. Compact equipment comprises smaller utility equipment such as mini excavators used in road building, mining and landscaping.
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