BofA Merrill Leads Debt Financing for Platinum Acquisition
Platinum Equity announced it has completed the acquisition of Volvo Rents from the Volvo Group. Volvo Rents is a North American provider of small-to-medium sized rental equipment serving a diverse customer base across multiple industries, including construction, oil and gas, industrial manufacturing, infrastructure, power, and metals and minerals.
Platinum Equity partner Louis Samson, who led the transaction team at Platinum Equity, said he is excited about Volvo Rents’ prospects under new ownership.
In a related news release, Volvo Rents said the divestiture was completed on January 31, 2014 and the price paid was $1.1 billion. Volvo Rents has operations in the U.S., Canada and Puerto Rico and has about 2,100 employees.
Platinum Equity said debt financing for the acquisition was led by Bank of America Merrill Lynch with Morgan Stanley, Goldman Sachs and Barclays serving as joint bookrunners.
“We believe Volvo Rents has a tremendous opportunity to reach new heights as a standalone company,” said Mr. Samson. “We have a lot of experience owning and operating equipment rental businesses and will work with the management team to help the business grow both organically and through prospective complementary add-on acquisitions.”
Platinum Equity also currently owns Maxim Crane, a full-service provider of crane rental and lifting services.
A team that includes Platinum Equity in-house operations specialists is focused on transitioning the newly acquired business. A rebranding initiative is underway, and a new company name and image is expected to be announced soon.
Morgan Stanley and Harris Williams served as financial advisors to Platinum Equity on the Volvo Rents acquisition and Latham & Watkins served as legal advisors.