06.02.2017

Cooper takes 4-Way Equipment

Canada’s Cooper Rentals has acquired the assets of 4-Way Equipment Rentals from publicly quoted owner Canadian Equipment Rentals Corp for $8.5 million in cash.

4-Way is based in Edmonton, Alberta and serves Edmonton and Northern Alberta with equipment from small tools to skid steer loaders and a few aerial lifts, in total it has around 11,000 items in its fleet. Its customers range from house builders to light industrial and small contractors. The deal is expected to close later this week.

Canadian Equipment intends to focus more on its oilfield and energy rental operations, while Ontatio based Cooper -owned by private equity firm SeaFort Capital since 2013 – has been looking to expand through acquisitions and purchased SMS Rents from Sumitomo in late 2015. Click here for Canadian rental merger

The price paid is roughly 73 percent of current tangible asset book value and represents around 5.2 time annual earnings before interest and depreciation.

Canadian Equipment’s chief executive Ken Olson said: “This transaction is the next step in strengthening our balance sheet and narrowing the focus of the company to the upstream and midstream energy services industry. The cash proceeds from the sale will be used to reduce bank indebtedness and provide us with greater re-financing flexibility.”
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4-Way Equipment runs just a few aerial lifts