RSC Holdings this week announced that Ripplewood Holdings Llc, a private equity firm holding approximately 34 percent of outstanding RSC Holdings common stock through two of its funds, has distributed 26.6 million RSC common shares to its limited partners and is retaining ownership of the remaining 8.2 million shares. Oak Hill Capital Management Llc, a private equity firm also holding approximately 34 percent of outstanding RSC Holdings common shares, is retaining its entire position in RSC.
“We continue to believe that RSC is the best company in the equipment rental business and we are pleased by the success of our investment to date,” said Timothy Collins, Ripplewood’s founder. “This share distribution was made to provide our limited partners with greater flexibility in an environment where private equity investors are very focused on liquidity. We have great confidence in the RSC business model and management team with respect to our continued investment in the company.”
Denis Nayden, chairman of RSC’s board of directors and a managing partner at Oak Hill, said, “We continue to be impressed with the execution management is exhibiting during these challenging times and with the manner in which the company continues to lead its industry in virtually every significant metric. We remain confident in the long term prospects for this company and our investment.”
Simultaneous with the share distribution, Ripplewood’s four representatives on the board of directors of RSC Holdings have resigned. Ripplewood representatives were Timothy Collins, Christopher Minnetian, Scott Spielvogel and Donald Wagner. Concurrent with this announcement the board of directors reduced its size to eight members in light of the four vacancies created by these resignations.
“This distribution has the benefit of diversifying our shareholder base and increasing our public float and has no impact on our operations, liquidity, debt covenants or financial results,” said Erik Olsson, RSC president and CEO. “We will continue to work closely with our board of directors to deliver industry-leading performance and drive shareholder value.”
Based in Scottsdale, Ariz., RSC Holdings is the holding company for the operating entity, RSC Equipment Rental, which is No. 2 on the RER 100.
