Coates Hire is one of Australia’s largest industrial equipment hire businesses. Image: Coates Hire.
BY CAMERON DRUMMOND
SEVEN Group Holdings will take 100 per cent ownership of Australia’s largest equipment company Coates Hire in a deal worth $517m.
Seven Group will acquire the remaining 53.3 per cent interest from Carlyle Asia Partners as part of a strategy to boost industrial services division in Australia.
Originally established in 1885 as a small Melbourne-based engineering company, Coates Hire is one of the most recognisable names in the equipment hire industry.
It has more than 200 branches across Australia and provides a wide range of products including earthmoving and access equipment.
A consortium comprised of Seven Group, Carlyle and other minority owners acquired the company in 2008 when it was privatised as part of a $2.9 billion deal.
Seven Group managing director Ryan Stokes said the company was pleased to reach an agreement with Carlyle to acquire the shares in Coates it didn’t already own.
“We have a long history with the Coates Hire business and believe with the visible market opportunity associated with east coast infrastructure activity, along with the current performance of the business and management team, the company is extremely well positioned to create value for all shareholders,” Mr Stokes said.
“The move to full ownership of Coates Hire will enhance Seven Group’s position as a leading operator of industrial services businesses, with strong macroeconomic environment and a positive outlook providing the potential for significant opportunities to be realised.”