pcJ News Briefs – Ashtead Group plc (LSE: AHT), through its North American business, Sunbelt Rentals, has completed the acquisition of CRS Contractors Rental Supply (CRS), a portfolio company of Clairvest Equity Partners IV, for CDN $275 million, plus earnout payment of up to CDN $20 million.
Clairvest Equity Partners IV Limited Partnership and Clairvest Group Inc. (TSX: CVG) through Clairvest Equity Partners IV‐A owned 31.8% and 5.1% of CRS respectively. Clairvest expects to receive CDN $31.7 million for an internal rate of return (IRR) of 31%.
photo credit: CRS Contractors Rental Supply
CLAIRVEST COMPLETES SALE OF CRS
Toronto, Ontario (August 2, 2017) – Clairvest Group Inc. (TSX: CVG) (“Clairvest”) today announced that it and Clairvest Equity Partners IV (“CEP IV”) completed the sale of their units of CRS Contractors Rental Supply (“CRS”) to Ashtead Group plc business Sunbelt Rentals of Canada Inc. (“Sunbelt”).
CRS is a leading provider of construction equipment rental, sales and related services throughout the Province of Ontario. Over the life of the investment, Clairvest and CEP IV realized an internal rate of return (“IRR”) of 31%. The sale has a positive impact on Clairvest’s value per share of approximately $0.17 versus the carrying value at March 31, 2017.
Since Clairvest partnered with the founders and management team of CRS in February 2013, the company substantially grew its rental fleet, branch network and EBITDA, all while maintaining a relentless focus on best in class customer service.
“By investing alongside the CRS leadership team as equity partners, Clairvest preserved the service first mentality that has always differentiated CRS in the market,” commented Steve Fay, Chairman of CRS. “Clairvest’s contributions included the development of a strong platform for safety, finance, technology, and talent management. They also emphasized a culture of aggressive investment and high return on capital for our rental fleet. I am very proud of what we have achieved together.”
“Our successful partnership with CRS is a terrific example of Clairvest’s investment approach. The leadership team was heavily invested and this culture of ownership created a competitive advantage for CRS,” said Mitch Green, Managing Director at Clairvest. “We are proud of the results generated by the entire CRS team and are excited that the organization will continue to thrive with Sunbelt,” added Mr. Green.
Catalyst Strategic Advisors acted as exclusive strategic and financial advisor to CRS and its Board of Directors in this transaction.
Clairvest Group Inc. is a private equity management firm that invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753