Word came last week that Branson Tractors, with national headquarters in Rome, Georgia, has signed a letter of intent with Montana Tractors of Springdale, Arkansas that would eventually merge the two tractor companies.
Branson Tractors are manufactured by Kukje Machinery of South Korea, a tractor and engine manufacturer that also produces engines for Cummins Engines based in Indiana. Montana Tractors was founded by the late JB Hunt and two former Wal Mart executives and has been distributing tractors in the U.S. with a network of over 250 dealers. With the merger the new entity could have the potential of 500 dealers nationwide.
Mr. D. J. Shim, president of Branson Tractors released the following statement about the merger:
Branson and Montana signed a letter of intent to create joint venture by the end of 2009. We are at the beginning stage of the whole process. According to the non-binding agreement, the new entity is expected to take over all assets and liabilities of both Branson and Montana and most of the existing agreements and contracts under Branson will be succeed to the new entity. The new joint venture will serve all the existing dealers of Montana and Branson.