HOUSTON — Texada Software, following the recent announcement of an exclusive distribution agreement with LiuGong Construction Machinery for the Houston marketplace and the closing of a $25 million U.S. refinancing of its equipment rental operations in Southern California, this week announced it has entered into a non-binding agreement to acquire selected operating assets of Bane Machinery Houston LP located in Houston. The transaction will be completed by a subsidiary of Noble Iron, a wholly owned U.S. subsidiary of Texada Software.
"This transaction will mark our entry into a second major market in the U.S.,” said Willie Swisher, CEO of Texada and Noble. “The business will operate a full rental and distribution location serving southeast Texas from our leased facility located at 505 Rankin Road, Houston, Texas. This extension of our operational footprint will allow Noble to expand upon its strong relationship with theCorporation and our exclusive distribution of LiuGong Construction Machinery.”
The agreement is for the acquisition of certain operating assets of Bane Machinery. Along with the purchase of the Bane assets, includingequipment, Noble is expected to retain all employees and an extensive, active customer list. In conjunction with the closing of the agreement, Noble will enter into a lease on the property currently occupied by Bane Machinery's Houston operations. The total consideration for the acquisition of the operating assets is expected to be approximately $1.9 million. None of Bane Machinery's liabilities will be assumed as part of the transaction.
The agreement, which will close on or before July 20, is subject to certain customary conditions including the completion of satisfactory due diligence, the entering into an acceptable real estate lease and financing satisfactory to the company.
Texada Software operates in three complementary businesses: equipment rental, equipment dealership and enterprise asset management software. The company, through its wholly owned U.S. subsidiaries, is expanding its presence in the construction and industrial equipment industry. Noble Rents is an equipment rental business serving Southern California with more than 7,000 customers and a wide range of more than 1,100 aerial, forklift and lightrental units, formerly known as Rolls High Reach. Noble Equipment is the exclusive distributor of LiuGong Construction Machinery equipment in Southeast Texas.