08.10.2014

New owner for AmQuip

Clearlake Capital Group has acquired US crane rental company AmQuip from its largest shareholder Altpoint Capital Partners and other investors. Financial terms of the transaction have not been disclosed.

Founded in 1967, AmQuip operates around 500 cranes, operating from 13 locations and covering 36 states. The product range runs from five tonne cranes up 650 tonnes. AmQuip was purchased by Altpoint, Bard Capital group and Lehman Brothers from founder Joe Wesley in July 2007 for $320 million. Wesley also retained a holding in the business.

Amquip chief executive Al Bove said: “We are excited to partner with Clearlake, which boasts a successful track record of backing, supporting and growing companies that provide services to the energy and industrial end markets. Clearlake’s operational expertise and financial resources will help solidify
AmQuip’s position as a leading North American lifting solutions provider.”

Clearlake founding partner José Feliciano added: “AmQuip’s strong focus on safety, customer service, and attracting, developing, and retaining skilled employees has positioned it as a leader in the crane rental space. We are excited to partner with the company’s outstanding executive and professional team to grow AmQuip as a platform for industry consolidation, both organically and through acquisitions.”

Bove, Feliciano, Arta Tabaee and Colin Leonard of Clearlake will join the company’s board of directors.

California based Clearlake is a private investment firm focused on special situations and private equity investments such as corporate divestitures, recapitalisations, buyouts and reorganisations. It currently manages approximately $1.4 billion of equity capital covering industries as diverse as consumer products, retail, defence, public safety, energy/power, healthcare, industrials, media, software and technology.

Vertikal Comment

Altpoint originally took a back seat when it bought into Amquip in 2007, in a deal led by Bard Capital and Lehman Brothers with previous owner and founder Joe Wesley retaining a small stake. Since then the business has gone through challenging times, with long time president Frank Bardonaro leaving in 2010, shortly after he added the chief executive title to his role. Chuck Snyder was then recruited to replace him and lasted just over a year before suddenly departing. Al Bove was promoted to the job in 2012 and since then the business appears to have stabilised.

With the market now more buoyant this was probably the first decent opportunity that Altpoint had to exit the business. One cannot help but wonder if it managed to turn a profit on the transaction or if it bailed out at a loss?

Timing is everything as they say and 2007 was certainly not the best of times to have acquired a crane rental business in the USA. And it is entirely likely that hindsight will show that 2014 was probably not the best time to sell either, as we hopefully continue a steady upward cycle for the industry.