Shareholders of Coates Hire, Australia’s biggest rental company, last week voted to approve a $1.66 billion acquisition by competitor National Hire Group and private equity firm The Carlyle Group. Almost 90 percent of voters approved the $6.59-per-share cash bid, more than the 75 percent approval required.
Coates has 190 locations in Australia as well as facilities in the United Kingdom and Indonesia. National Hire, also a player in the Australian hire market, is 67-percent owned by media owner Kerry Stokes.
National Hire and Carlyle have formed a new company, Ned Group Holdings Ltd. to acquire Coates as well as National Hire’s rental business. Both companies will hold a 50-percent voting interest in Ned Group, which will be headed by Coates’ managing director Malcolm Jackman.
Earlier this month, Coates increased its earnings growth forecast for the current fiscal year to 20 percent from 15 percent, reflecting stronger market conditions than the previous year.
