Toromont Industries announced on Monday it's buying Hewitt Equipment Limited for almost $1.02 billion in cash and stock.

Hewitt is a Caterpillar equipment dealer in Quebec, Western Labrador and the Maritimes. It is also a Caterpillar lift truck dealer in parts of Ontario.

The transaction is being paid for in $917.7 million in cash, plus 2.25 million Toromont shares. Toromont said it plans to help finance the transaction with up to $750 million in debt.

"Acquiring Hewitt marks a very important milestone for Toromont and is beneficial to our customers, employees and shareholders on many levels," said Tormont CEO Scott Medhurst in a press release.

Hewitt was founded in 1952; is based in Pointe-Claire, Quebec; and has approximately 2,000 employees. It posted more than $1 billion in revenue last year, according to a press release.

TD Securities, CIBC Capital Markets and BMO Capital Markets acted as Toromont’s financial advisors.

Shares of Toromont surged 10 per cent at the market open Monday. 

“You can see they are trying to gains economies of scale from being a much larger Caterpillar dealer, much like Finning has done,” former Toromont shareholder John Zechner, chairman of J. Zechner Associates, told BNN via email. “There are lots of cost synergies, so the acquisition would add to both earnings and revenue -- which is why the stock is higher.” 

Three of the oddest machines you can buy at Hewitt:

ROOF SUPPORT TRANSPORT:

This model can carry up to 66 tons of roof supports for subterranean projects, reaching a top speed of just over 10 miles per hour in the process. 

KNUCKLEBOOM LOADER:

This knuckleboom loader, used in the forestry sector to move logs on to trucks, has a reach of 32 feet and boasts 174 horsepower.

FELLER BUNCHER

The feller buncher can grab and cut through several trees without having to pause to put down a log. This model can lift as much as 6100 kilos worth of lumber at a time. 

-- With files from BNN's Ian Vandaelle