Platinum Equity Partners has sealed its biggest deal since raising a new $3.75bn buyout fund in September by agreeing to purchase Volvo’s North American machine rental business for about $1.1bn.
Volvo Rents provides small to medium-sized rental equipment to customers across the construction, oil and gas, industrial manufacturing, infrastructure, power and mining industries.
Platinum Equity chairman and CEO Tom Gores said he was pleased about the strong relationship developed with the Volvo Group, one of the world’s leading industrial manufacturers.
He said, “This transaction is the culmination of hard work on both sides.
“We appreciate Volvo’s trust in selling us the business and in our ability to execute a complex carve out.
“We will collaborate with Volvo, the Volvo Rents management team and its employees and customers to ensure success.”
Platinum currently owns Maxim Crane, a full-service provider of crane rental and lifting services, and Nesco, which provides utility equipment rentals, sales and services for the electrical transmission and distribution markets.
Platinum partner Louis Samson, who led the transaction team for the latest deal, said, “We have a great deal of experience owning and operating equipment rental businesses and we understand the importance of seamless transitions and long-term operational stewardship.
“With over 130 branches across North America, Volvo Rents represents a tremendous platform to build upon.”
Platinum closed its third fund on its $3.75bn target three months ago, confirming a scoop from AltAssets in July.
The close meant Fund III had outstripped the $2.75bn Platinum raised for its second fund in 2008, and was well above the firm’s $700m debut closed in 2004.
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