To consolidate, Scott Machinery sells John Deere, Hitachi business

Grace Leong

A Salt Lake City construction equipment dealer has sold its John Deere and Hitachi business to Honnen Equipment Co. of Commerce City, Colo. Terms of the sale weren’t disclosed.

Scott Machinery, a construction equipment dealer that had eight locations in Idaho, Wyoming, and Utah including one in Orem, divested part of its business to focus exclusively on selling and leasing new and used Bobcat compact industrial, construction and agri-business equipment, and provide parts and repair services. It will also continue to be an Ingersoll-Rand equipment dealer.

Jeffrey Scott, the company’s vice president and Wasatch division manager, said the move is part of a growing trend of consolidation among construction equipment dealerships nationwide.

Proceeds from the sale will be used to recapitalize the business, he said.

Even though Scott Machinery’s sales declined in 2008 because of the housing slump and ongoing recession, Scott said the company hopes its business will improve with its move to being an exclusive Bobcat dealer.

“The compact equipment business segment is a strong and growing segment in the construction industry,” Scott said. Compact equipment comprises smaller utility equipment such as mini excavators used in road building, mining and landscaping.

Under the deal, Scott Machinery will now do business as Intermountain Bobcat with its corporate headquarters at 4100 S. 500 West in Salt Lake City. It also retained its stores at 1167 Industrial Road in Orem, Cedar City, Salt Lake City and opened a new location at 3788 N. 500 East in Idaho Falls. These locations will now sell and lease Bobcat equipment exclusively.

The company’s former headquarters at 4055 S. 500 West in Salt Lake City is now taken over by Honnen Equipment, a John Deere dealer that will also be selling and leasing Hitachi construction equipment. Honnen will also take over Scott’s former locations in Ogden, St. George, Salt Lake City and Idaho Falls.

About 90 of Scott Machinery’s total workforce of 135 will now be Honnen’s workers, while the remaining 45 will join Intermountain Bobcat.

Brent Scott, founder of Scott Machinery, started the business in 1968 with four people in a converted service station at 1404 S. 300 West in Salt Lake City. The company, now managed by Scott’s sons, Jeffrey and David, president and CEO, made more than $100 million in sales in 2007, Jeffrey said.

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