Toronto-based buyout shop Kilmer Capital Partners today announced the close of a majority investment in Compact Power Equipment Centers Inc. of Fort Mill, South Carolina, a leader in the rental, service and sale of commercial and towable construction equipment. Kilmer partnered in the deal with company management and another Canadian private equity investor, TerraNova Partners LP.
KILMER CAPITAL PARTNERS – INVESTMENT SUMMARY
Compact Power Equipment Centers Inc. (“CPEC”) is a rapidly growing specialty outdoor equipment rental company based in Fort Mill, South Carolina (a suburb of Charlotte, North Carolina). CPEC rents specialized small construction equipment, including mini-skid steers, backhoes, trenchers and chippers, to landscape, irrigation, construction and other specialty contractors, as well as do-it-yourself retail customers. In addition, CPEC owns and operates a maintenance services division, Compact Power Services (“CPS”), which provides maintenance services to some of the largest OEMs and retailers across Canada and the United States, while also providing comprehensive maintenance services for the CPEC rental operations.
Since 2009, in partnership with The Home Depot, CPEC has assumed ownership of the towable rental equipment business at over 500 locations and has plans to expand significantly to become one of the largest equipment rental companies in North America.
Kilmer partnered with another Canadian private equity group to acquire a majority interest in CPEC. Together with the senior management team, we helped raise US$50 million of asset-based financing to support rapid expansion plans. As part of the transaction, CPEC hired an experienced rental industry executive to become Chief Operating Officer. With a stronger balance sheet and expanded management team the company is well-positioned to achieve its transformative growth plans.