Investment group Seven Group Holdings (SGH) has announced that it has entered into a binding agreement to pay $517 million to acquire the remaining 53.3 per cent of securities in equipment hire company Coates Hire that it does not already own, from an affiliate of Carlyle Asia Partners II, a fund managed by The Carlyle Group, and minority owners.
SGH said in a media statement that the Coates Hire acquisition reflects its continued focus on becoming “the leading operator of industrial services businesses in Australia” and driving efficient capital allocation across its portfolio.
“The Coates Hire business is led by a strong and experienced management team, with a number of business improvement initiatives in place and already delivering results,” the statement continued.
“Full ownership of Coates Hire will enhance SGH’s portfolio with increased exposure to industrial services.”
Ryan Stokes, Managing Director and CEO, SGH, said: “We are pleased to reach agreement with Carlyle to acquire the shares in Coates Hire we don’t already own.
“We have had a long history with the Coates Hire business and believe with the visible market opportunity associated with East Coast infrastructure activity, along with the current performance of the business and management team, the company is extremely well positioned to create value for all shareholders.
“The move to full ownership of Coates Hire will enhance SGH’s position as a leading operator of industrial services businesses, with a strong macroeconomic environment and a positive outlook providing the potential for significant opportunities to be realised.”
The transaction is subject to satisfactory waivers being obtained from Coates Hire’s existing lending syndicate.