Los Angeles (December 10, 2013) – Platinum
Equity today announced it has signed a definitive agreement to acquire Volvo
Rents from the Volvo Group. Volvo Rents is a leading North American provider of
small-to-medium sized rental equipment serving a diverse customer base across multiple industries, including construction, oil
and gas, industrial manufacturing, infrastructure, power, and metals and
minerals.
Platinum Equity Chairman and CEO Tom Gores
said he is pleased about the strong relationship developed with the Volvo
Group, one of the world’s leading industrial manufacturers.
“This
transaction is the culmination of hard work on both sides. We appreciate
Volvo’s trust in selling us the business and in our ability to execute a complex
carve out,” said Mr. Gores. “We will collaborate with Volvo, the Volvo Rents
management team and its employees and customers to ensure success.”
The transaction is subject to regulatory
approval and certain closing conditions, and is expected to be completed in the
first quarter of 2014.
“We looked at
different alternatives to grow Volvo Rents’ business and concluded that the
best alternative is to sell the operation to Platinum. This new owner structure
will ensure a continued strong development of Volvo Rents,”
said Olof Persson, Volvo Group President and
CEO.
Platinum Equity
currently owns Maxim Crane, a full-service provider
of crane rental and lifting services, and Nesco, a provider of utility equipment
rentals, sales and services for the electrical transmission and distribution
markets.
“We have a great deal of experience owning
and operating equipment rental businesses and we understand the importance of seamless transitions and long-term
operational stewardship,” said Louis Samson the Partner who led the
transaction team at Platinum Equity. “With
over 130 branches across North America, Volvo Rents represents a tremendous
platform to build upon. We intend to deploy our resources to grow the business
organically and through complementary add-on acquisitions.”
Earlier this
year Platinum Equity completed raising Platinum Equity Capital Partners III, a $3.75
billion buyout fund focused on investing in businesses that can benefit from
Platinum Equity’s operational expertise. Among the transactions Platinum Equity has completed in 2013 are several
corporate divestitures, including transactions with AP Moeller Maersk, CBS,
CheckPoint Systems, Emerson and Deutsche Post DHL.
About Platinum Equity
Platinum
Equity (www.platinumequity.com) is a global M&A&O® firm specializing in
the merger, acquisition and operation of companies that provide services and
solutions to customers in a broad range of business markets, including
information technology, telecommunications, logistics, metals services,
manufacturing and distribution. Since its founding in 1995 by Tom Gores,
Platinum Equity has completed more than 150 acquisitions.
About Volvo Rents
Volvo Rents, a wholly-owned subsidiary
of the Volvo Group, operates 130 rental stores in North America. The company
operates a network of company-owned rental stores in North America. Each of the
North American rental centers offers a comprehensive line of essential
equipment for the construction, commercial and industrial markets, as well as
an extensive line of Volvo compact excavators, compactors, wheel loaders,
backhoe loaders, compaction equipment, and skid steer loaders. For more
information, visit www.volvorents.com.
The Volvo Group is
one of the world’s leading manufacturers of trucks, buses, construction
equipment and marine and industrial engines. The Group also provides complete
solutions for financing and service. The Volvo Group, which employs about
115,000 people, has production facilities in 19 countries and sells its
products in more than 190 markets. In 2012 the Volvo Group’s sales amounted to
about SEK 304 billion. The Volvo Group is a publicly-held company headquartered
in Göteborg, Sweden. Volvo shares are listed on OMX Nordic Exchange Stockholm.
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