Titan Machinery will implement a restructuring plan to consolidate certain dealership locations and a reorganization of its operating structure.

The restructuring plan is expected to result in a significant reduction of expenses while allowing the company to continue to provide a leading level of service to its customers. The company closed one construction location during the fourth quarter ended January 31, 2017 and expects to close 14 agriculture locations during the first half of the current fiscal year.

The restructuring plan is expected to be completed by the end of July 2017, the end of the company’s second fiscal quarter. The company is focused on retaining the majority of the revenue from the locations being closed. The reduction in revenue is expected to be approximately $40 million, or less than 4% of overall company revenue, on an annual basis and $30 million for the current fiscal year. The restructuring plan is expected to generate an annual expense reduction of approximately $25 million. For fiscal 2018, the expense reduction is expected to be approximately $20 million. The restructuring plan, excluding non-recurring costs described below, is expected to increase adjusted pre-tax income by approximately $16 million on an annual basis and $13 million for fiscal 2018.

David Meyer, Titan Machinery’s chairman and chief executive officer, said, “As we built one of the largest equipment dealership networks in North America, we made a number of acquisitions, including smaller ones, in close proximity to other locations in our network. Although it’s a difficult decision to close a Titan location, by consolidating these adjacent locations, we will be able to achieve increased scale and efficiency to support our customers in those markets.”

Founded in 1980 and headquartered in West Fargo, ND, Titan Machinery owns and operates a network of agricultural and construction equipment locations in the U.S. and Europe.