30.11.2011

Sunbelt acquires Pacific High Reach

Ashtead owned Sunbelt Rentals has acquired the access rental business of Pacific High Reach & Equipment Services, of Orange, California which filed for chapter 11 bankruptcy in early August.

The company bid for the business, along with several others in an auction held through the bankruptcy court. It was declared the winner and approved by the court in Mid-November with paperwork filed last week. The deal sees it acquiring most of Pacific’s assets under Section 363 of the bankruptcy code for around $17.4 million.

Pacific High Reach was established in 2001by Mike Davis and others, it built up a fleet of approximately 1,200 aerial lifts and telehandlers and generated revenues of around $15.5 million in 2009. It was hit harder than most by the downturn though and revenues plummeted in 2010 and 2011.

Pacific had over $24 million of secured debt and although it has been profitable through the Chapter 11 process it was unable to find finance to cover its emergence and would never have generated sufficient funds to repay the debt and cover the interest. Click here to see original report

Matthew Pakkala of FTI Consulting who, along with FocalPoint Partners, advised Pacific High Reach through the Chapter 11 process said: “Sunbelt Rentals is an industry leader and this acquisition will help them expand their overall presence in the western region and capitalise on certain new niche market segments as well. This competitive sale process also helped generate a substantial recovery for creditors. Our advice, commitment and expertise throughout the process was critical in achieving this result.”