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Chris MacAllister, President of both firms under the new deal, said in a press release that the decision made sense for MacAllister Machinery, who were looking to expand their retail operations of used tractors for sale.
“Michigan Cat has a strong reputation for excellent customer service, a very good organization and a market twice the size of MacAllister,” said Mr MacAllister.
“There are significant opportunities to grow and improve each company by sharing information, best practices, resources and common functions.”
MacAllister Machinery has 16 separate premises across Indiana and employs over over 750 staff. THe business was founded 66 years ago, and now serves customers in a variety of industries and applications including heavy construction, coal, quarry/aggregate, scrap/waste, commercial/residential construction, agriculture and power.
Novi-based Michigan Tractor, also known as Michigan CAT, sells and rents backhoes, bulldozers, graders, loaders, used tractors, and other equipment used in the construction, forestry, and other industries.
The company was founded in 1944 by Jerrold A. Frost Sr. who was chief executive officer until 1971 when his son-in-law, Mark Jung, was elected president.
His son, Jerrold M. Jung, was elected dealer principal in 1988. The sale of Michigan CAT after 67 years in business ends three generations of ownership by the Frost and Jung families.
Michigan CAT, which has customers throughout Michigan’s Lower peninsula, serves industries similar to MacAllister. According to information provided by the companies, Jerry Jung decided to sell Michigan CAT when subsequent generations expressed desires to explore ventures outside of the equipment industry.