The decision not to sell the business was based on volatility in interest rates, currencies and public markets and the fact that some of the sectors Coates Hire is exposed to including construction, mining and engineering, remain “out of favour”, said the Wall Street Journal, citing a person familiar with the matter.
Malaysia’s UMW Holdings, Japan’s Mitsui and Australia’s Wesfarmers expressed interest, but failed to match the asking price, according to the source.
Carlyle and Seven Sisters bought the business for A$2.9bn in 2008.
Seven Sisters said in a statement, “Both Seven Group and Carlyle remain fully committed to the business and continuing to grow Australia’s leading rental company.”
Coates Hire has 200 branches and locations in various markets including engineering, building construction and maintenance, mining, manufacturing, government and events.
Earlier this month Carlyle agreed to sell its stake in infant formula and soy milk company Yashili International Holdings to China Mengniu Dairy.
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