ECM Energy Services to Sell Rental Division Assets to Sunbelt Rentals

Sept. 10, 2014

ECM Energy Services has entered into an asset purchase agreement to sell its equipment rental division to Sunbelt Rentals Industrial Services.

ECM Energy Services has entered into an asset purchase agreement to sell its equipment rental division to Sunbelt Rentals Industrial Services. The all-cash transaction is expected to close this month, subject to customary closing conditions. Terms of the agreement were not disclosed.

A portion of the proceeds will be used to repay lenders, resulting in a significantly strengthened balance sheet with minimal debt for ECM. ECM, ranked No. 63 on the RER 100, supplies light towers, generators, reach forklifts, boomlifts, water trucks, traffic control equipment and pilot car services for escorting oversized hauling trucks to the Utica, Marcellus and Eagle Ford plays and Mississippian Lime activity in Oklahoma. ECM plans to continue business with a focus on its water and traffic logistics division.

For Sunbelt, the acquisition strengthens its involvement in the burgeoning energy and oil-and-gas sector.

“Sunbelt Rentals is a stellar company and I am very pleased our successful turnaround of the equipment rental division enabled this transaction,” said Kevin Groman, CEO of ECM. “The safety-focused and customer-centric cultures of both companies will pave the way for a smooth integration of ECM’s equipment rental operations and employees. Sunbelt is the second largest equipment rental company in the United States, and with its oil and gas services division, it has positioned itself, like ECM, to provide unmatched customer service to the oil and gas sector. In addition, I am excited that this acquisition will enable our customers to grow more rapidly through Sunbelt’s existing footprint, fleet and access to capital.

“Our strengthened balance sheet positions our water logistics team to drive growth, increase profitability and deliver value to our shareholders. As part of our continuing effort to increase efficiencies and reposition the company, I will lead the transition of all corporate functions to Williamsport, Pa., and close our Scottsdale facility, which we expect to complete by year-end.”

After the transition, ECM and its approximately 150 employees in West Virginia, Ohio and Pennsylvania, will be led by Harry Wahl, a company founder and main driver of the water and logistics division.

“I would also like to thank our tremendous equipment rental employees and our Scottsdale employees who helped to position the company for this successful outcome,” said Wahl.

Sunbelt Rentals is No. 2 on the RER 100.