Seven Group to buy remaining stake in Coates Hire

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  • Earthmovers & Exacavators

Investment company Seven Group Holdings (SGH) will move to 100 per cent ownership of Coates Hire after buying the remaining 53.3 per cent stake in the company.


Coates Hire at John Holland worksite


SGH says it will use its existing debt facilities and available cash to fund the $517 million transaction.

SGH bought 46.7 per cent of the equipment hire company in 2008, with a consortium of The Carlyle Group and other minority stakeholders owing the remaining share.

The buyout is expected to enhance SGH’s portfolio as the company expands its industrial services division with the addition of an operating business.

"We are pleased to reach agreement with Carlyle to acquire the shares in Coates Hire we don’t already own," SGH MD and CEO Ryan Stokes says.

"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 deal is subject to satisfactory waivers being obtained from Coates Hire’s existing lending syndicate.

Coates Hire offers a range of products, including earthmoving and access equipment, across its over 200 branches Australia-wide. 

 

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