Titan Machinery announced it has entered into a definitive purchase agreement to acquire St. Joseph Equipment’s construction equipment business. The acquisition consists of four construction equipment locations in Shakopee, Hermantown and Elk River, Minnesota, and La Crosse, Wisconsin. The acquisition is subject to customary conditions to closing and is expected to close by the end of May 2011.

The transaction establishes Titan Machinery’s first construction equipment dealership in Wisconsin. With this acquisition, Titan Machinery will have the exclusive Case Construction Contract for the entire state of Minnesota and 11 counties in western Wisconsin.

St. Joseph Equipment’s agricultural division will continue to sell agricultural equipment at its locations in La Crosse, Wisconsin, and Eyota and Lewiston, Minnesota. Construction revenues for fiscal 2010 were approximately $45 million.

St. Joseph Equipment was founded in 1948 by William Schams, Sr. in La Crosse, Wisconsin. In 1956, William Schams Jr. purchased the company and currently manages the business with his children — Chuck Schams, Steve Schams, Sherry Wuebben, and Larry Schams. The company has expanded over the years to seven locations providing agricultural and construction equipment in Minnesota and western Wisconsin.

Chuck Schams of St. Joseph Equipment stated, “We will use this divestiture of our construction equipment business to focus on expanding our agricultural equipment business.”

David Meyer, Titan Machinery’s chairman and CEO, said, “This acquisition expands our construction equipment footprint throughout Minnesota, solidifies our Case CE business in the state of Minnesota and represents our entry into the state of Wisconsin. This will create very strong synergies and market potential in the Minneapolis/St. Paul metro and surrounding areas. The Schams family has built a very positive reputation in the construction equipment business and their customer relationships throughout Minnesota and surrounding areas of western Wisconsin have been cultivated over many years of exceptional service.”