The Hewitt Group Announces Agreement to Sell to Toromont Industries

POINTE-CLAIRE, QUÉBEC--(Marketwired - Aug. 28, 2017) - The Hewitt Group ("Hewitt"), the authorized Caterpillar dealer for the province of Québec, Western Labrador and the Maritimes, as well as the Caterpillar lift truck dealer for most of Ontario, announces that it has signed a definitive agreement to sell its business to Toromont Industries Ltd. (TSX:TIH), a diversified industrials company providing specialized capital equipment and ongoing support to customers in various sectors.

Headquartered in Pointe-Claire, Québec, and founded in 1952, Hewitt has 45 branches across Eastern Canada and employs more than 2,000 people. The Company is privately held.

The transaction will create growth by leveraging an extensive Canadian network covering Central and Eastern Canada and Nunavut, complementary networks, high quality products, talented workforces, as well as the expertise of both companies.

"The decision to sell the business founded 65 years ago by my father has not been an easy one, but is the outcome of much reflection on the part of my son David and me. We are extremely proud to have been at the centre of the resource and construction industries in Québec and the Maritimes helping to build roads, dams and mines and keep them running," said Jim Hewitt, Chairman and CEO of Hewitt. "With the trend towards consolidation taking root in each of the sectors in which Hewitt operates, we are confident that Hewitt's Customers and Employees will benefit from working within an even larger organization with access to even more resources and capital."

"Service par Excellence has been a cornerstone of Hewitt's success over the years. Toromont shares this culture and our commitment to Health and Safety, our number one Priority," added Mr. Hewitt.

The combination of Hewitt's facilities in Québec, the Maritimes, Labrador West, and Ontario and Toromont's operations in Ontario, Manitoba, Newfoundland, Labrador and Nunavut, creates the foundation for an even more competitive position in the natural resource, infrastructure, and construction industries in Canada. Customers will have access to a seamless, cross-territory service experience, moving from one territory to another with the same service and expertise.

Toromont intends to invest in people, facilities and technology as well as rental fleets and also expects to maintain existing facilities. Under Toromont's decentralized business model, regional leadership will continue to run their businesses locally - empowered to make decisions in the best interests of their customers.

We appreciate the confidence our Customers have shown in our products and services for the past 65 years. They can rest assured that we will continue to provide them Service par Excellence through the transition period.

The transaction is subject to customary closing conditions and is expected to close in October. McCarthy Tétrault LLP has acted as legal and strategic advisor to Hewitt Group for this transaction and National Bank Financial has acted as financial advisor.

About Hewitt Equipment

Hewitt is the authorized Caterpillar Dealer for the province of Québec and Western Labrador, and, since 1995, through its subsidiary, Atlantic Tractors & Equipment Ltd., is also the Cat Dealer for the Maritime Provinces. With headquarters in Pointe-Claire and 45 branches, the Hewitt Group sells, rents and services the full line of Caterpillar products through four divisions: Heavy Equipment, Material Handling, Energy and Truck. Hewitt's other subsidiaries are: Hewitt Material Handling Inc. (Ontario), Hewitt Rentals Inc. (Québec, Western Labrador and the Maritimes), Montréal Hydraulique Inc. and SITECH QM.. The Company is also the dealer for Maschinenbau Kiel GmbH (MaK) for Québec, the Maritimes, and the Eastern seaboard of the United States, from Maine to Virginia. The Hewitt Group employs more than 2,000 people across Eastern Canada.