Ashtead to acquire Clairvest backed CRS for $275M

Ashtead Group plc (LSE: AHT), through its North American business, Sunbelt Rentals, has signed an agreement to acquire CRS Contractors Rental Supply (CRS), a portfolio company of Clairvest Equity Partners IV, for an initial cash consideration of CDN $275 million with an additional earn out of up to CDN $20 million.

Subject to certain regulatory approvals, the acquisition is expected to complete in the next few weeks.

CRS Contractors Rental Supply is a leading provider of rental equipment in Ontario, Canada employing over 400 people across 28 locations.

“This acquisition is a significant next step in developing Sunbelt’s position in Canada and our first move into the important Ontario market. I look forward to welcoming all of the CRS employees who will be joining Sunbelt as part of the acquisition and to working with them to deliver on the major opportunities ahead,” said Geoff Drabble, chief executive of Ashtead.

Clairvest Equity Partners IV Limited Partnership and Clairvest Group Inc. (TSX: CVG) through Clairvest Equity Partners IV‐A own 31.8% and 5.1% of CRS respectively.

Claivest invested in CRS in 2013. Clairvest Group Inc. (TSX: CVG) expects to receive CDN $31.7 million from the sale, comparing to the carrying value of CDN $28.8 million as at March 31, 2017.

Catalyst Strategic Advisors, LLC is acting as the exclusive strategic and financial advisor to CRS and its board of directors in this transaction.

photo credit: CRS Contractors Rental Supply

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.