Noble Iron has entered into a binding agreement to sell its Houston equipment sales and rental business. Noble Iron sold all of its shares of Noble Rents, which operated the Houston operations, to an arm’s length third party for $6.24 million
Noble Iron will continue to operate and grow its equipment rental and sales operations in Southern California and other regions, as well as its software platform Texada Software.
As part of the transaction, the purchaser has assumed an existing asset-backed credit facility in the principal amount of U.S. $5.63 million. The net proceeds to the company are $0.61 million, of which $500,000 is in cash and $110,000 is in the form of an unsecured promissory note, due in November 2017 at an annual interest rate of 3 percent.
“In consideration of the current state of Houston’s challenged economy and the relatively small size of our Houston equipment operations, we feel this sale is positive as it is an opportunity to reduce outstanding debt and to better position us to focus on scaling our software and equipment logistics and fulfillment operations in Southern California as we enter into 2017,” said Nabil Kassam, Noble Iron founder, chairman and CEO. “We at Noble Iron are committed to executing our goal of offering regional construction professionals the most comprehensive selection of equipment and service on-demand, because of a synergistic combination of our logistics infrastructure, equipment service capability, shared asset marketplace and state-of-the-art software.”
Noble Iron’s equipment rental and dealership operations are headquartered in Los Angeles. It also offers Texada Software, based in Canada. The company is No. 87 on the RER 100.
