(Shenandoah) -- The ownership of a major farm implement dealer in town is changing hands.
Officials with Vetter Equipment Wednesday announced the purchase of Madsen International in Shenandoah. Vetter Equipment President Glenn Vetter tells KMA News the deal was solidified with the official transfer of assets between the two companies. Vetter says his company began pursuing the Shenandoah business after purchasing a dealership in Clarinda in July of last year.
"We'd always known Tom Madsen and the family over there for years and years," said Vetter, "And, Tom had expressed an interest at one time that he might sell his business. So, we looked at it two years ago, and we worked on it several times last year. We finally came to an appraised price of the building and the land, and his other assets. It's a family operation, and they agreed to sell, and we made an offer on it."
Vetter declined to disclose the purchase price. Vetter officials were at Madsen Wednesday conducting an inventory of the merchandise on hand. He says the deal will help his company and the Shenandoah location in many ways.
"The area at Shenandoah is an open area," he said. "It will be an open area for us. It's kind of like that last little corner of the puzzle that we're going to fill in. It will increase the parts availability of the southwest location for Shenandoah. So, they will have access to our other 10 stores for parts and inventory. Plus, the biggest thing is we always transfer a lot of the equipment, whether it be new or used, from store to store. I think that with Shenandoah being so closed to Clarinda, they're going to share a lot of the equipment all the time."
With the Shenandoah store's acquisition, the Denison-based company now has 11 locations in Iowa. After opening the Denison location in 1975, the company opened a location in Audubon. Stores in Ida Grove, Storm Lake and Onawa were opened in 1994. In 1997, Vetter expanded into southern Iowa by purchasing dealerships in Indianola, Mount Ayr and Corydon. The Clarinda store's purchase was completed in 2013.
Vetter says the purchase comes as Madsen is celebrating a milestone. The company marked its 50th anniversary as an International Harvester and Case I-H dealer in November.
In addition to retaining the nine employees at Madsen, Vetter hopes to add at least two additional staff members in the near future to cover sales and parts.