CALGARY — Cervus Equipment Corp. says it has a deal to acquire the business and assets of Peterbilt of ontario Inc. for about $25.5 million in cash.

In announcing the deal after markets closed Wednesday, Cervus said it would use $20 million of its own money and $5.5 million drawn from credit facilities to purchase the business of POI, which operates dealerships across ontario selling and servicing the full line of Peterbilt trucks.

Cervus strives to be an outstanding dealer of trusted and reliable brands and we grow our business in partnership with strong manufacturers such as Peterbilt, president and CEO Graham Drake said in a statement.

This acquisition extends our relationship with Peterbilt and expands our transportation business into the largest freight market in Canada.

Peterbilt has been serving ontario for more than 33 years ago and currently operates 12 dealership locations. Each dealership sells and services the full line of Peterbilt Trucks, including road conventional, vocational, and medium-duty pick-up and delivery trucks.  Peterbilt has reported an average gross revenue of approximately $157 million per year over the last three fiscal periods.

Closing of the transaction, subject to various conditions including regulatory approval, is expected about July 21.

Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships and has interests in 56 dealership locations in Western Canada, New Zealand, and Australia.

On the Toronto Stock Exchange, Cervus shares were closed down nine cents at $21.09 on Wednesday.