Platinum Equity said Tuesday that it has agreed to acquire Volvo Rents from the Volvo Group. No financial terms were disclosed for the transaction, which is expected to close in the first quarter of 2014. Volvo Rents is a North American provider of small-to-medium sized rental equipment that serves multiple industries, including construction, oil and gas and industrial manufacturing.
LOS ANGELES, CA–(Marketwired – 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.