Cooper Rentals Canada Inc., a portfolio company of Seafort Capital, has agreed to acquire all the assets of 4-Way Equipment Rentals Corp. from Canadian Equipment Rentals Corp. (TSX-V: CFL) for cash consideration of $8.5 million. The transaction, which is expected to close on or around February 9, 2017.
CIBC Mid-Market Investment Banking is acting as exclusive financial advisor to Canadian Equipment Rentals with respect to the transaction.
Canadian Equipment Rentals said proceeds from the transaction represent approximately 73% of current tangible asset book value and approximately 5.2x twelve month trailing September 30, 2016 EBITDA.
4-Way Equipment Rentals went public in June 2005 through a reverse take-over (RTO) transaction valued at approximately $[mepr-active rule=”374″ ifallowed=”hide”]##subscriber ONLY content##[/mepr-active][mepr-active rule=”374″]2.8[/mepr-active] million. The company became Canadian Equipment Rental Fund Limited Partnership and later as Canadian Equipment Rentals Corp.
Seafort Capital, a Halifax based private equity firm controlled by a group of private investors including Sobey and McCain family members, acquired a majority stake in G. Cooper Equipment Rentals Ltd. in June 2013.
photo credit: Cooper Rentals