WEST FARGO, N.D. - Titan Machinery, Inc., a publicly-traded agricultural and constructuction equipment store network, on Tuesday announced it will purchase the Uglem-Ness Co., a dealership based in Northwood, N.D.
The deal is expected to close Oct. 1. Terms weren't disclosed.
The Titan acquisition represents an expansion in the northern Red River Valley of North Dakota and Minnesota, an area strong in the production of wheat, soybeans, corn and dry edible beans.
The purchase comes at the retirement of Bruce Uglem, Uglem-Ness Company's owner and principal. "With over 40 years in the business, it's time to retire," Uglem said, in a statement. "I know Titan Machinery values their customers and employees as I do, and we are aligned on our business philosophies. I have the utmost confidence Titan Machinery will be an asset to the Northwood Community, our customers, and our excellent group of employees."
Uglem announced the change to employees Monday.
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David Meyer, Titan chief executive officer, said his company will offer employment in-place for "100%" of the Uglem-Ness employees. "We believe in strong parts and service support, that's the culture of that business," Meyer said. Some human resources and accounting support will be available from the Fargo corporate headquarters, he says.
Meyer said he and Uglem have known each other for years. Both are former presidents of the North Dakota Implement Dealers Association.
Titan was founded in 1980. It owns and operates the largest CaseIH dealer network in the world, with 100 dealers. The network is in 11 states, including from Wisconsin to Arizona and from North Dakota to New Mexico. The company has stores in Bulgaria, Germany, Romania, Serbia and Ukraine.
Titan owns nearby stores in Casselton and Grand Forks in North Dakota. Meyer said employees among those stores know each other and expects there to be "some good synergies."
Asked whether reducing an independent dealer would affect competition for customer business, Meyer said the real competition is "between red and green," referring to CaseIH and John Deere, as well as Agco Challenger equipment. He said it takes a certain amount of sophistication to meet customer needs.
Meyer acknowledged that his company had done some dealer consolidation in 2014, as the company right-sized retail locations to match equipment size and service sophistication. The Uglem-Ness trade area had already seen some closings of stores in Cooperstown and Michigan, N.D., so the Northwood store is secure. "We're looking at Northwood being a long-term point," Meyer said.
