Sunbelt Rentals has grown its presence in the Gulf Coast petrochemical industry with the acquisition of Empire Holdings, Sunbelt’s parent company Ashtead plc announced today. Sunbelt bought the Baton Rouge, La.-based specialty provider of scaffold, erection and dismantlement services for $38 million, with a possible additional payment of $.5 million in cash depending on Empire’s profits in the fiscal year ending August 31.
Empire has seven branches in Louisiana, Texas, Alabama and Tennessee, serving a primarily industrial customer base in the Gulf Coast petrochemical industry. In the year ended Aug. 31, 2010, Empire reported revenues of $42 million with a pre-tax profit of $4 million. Its gross assets at the end of August were $35 million.
“We are delighted to conclude this acquisition, which is firmly in line with our long-term strategy of developing high-value specialty businesses that broaden our product offering and the markets we serve and provide us with significant cross-selling opportunities,” said Geoff Drabble, Ashtead chief executive. “Empire will operate as a wholly owned subsidiary within Sunbelt’s scaffold division with its key managers all remaining with the business.”
Based in Fort Mill, S.C., Sunbelt Rentals is No. 3 on the RER 100. Ashtead Group is based in London.