Attached files
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| 8-K - 8-K - Essex Rental Corp. | v204304_8k.htm |
Exhibit
99.1
ESSEX RENTAL CORP.
SUCCESSFULLY COMPLETES ACQUISITION OF COAST CRANE COMPANY
BUFFALO GROVE, IL – November
29, 2010 – Essex Rental Corp.
(Nasdaq: ESSX; ESSXW; ESSXU) ("Essex") today announced that it
successfully completed its acquisition of the assets and business of
privately-held Coast Crane Company (“Coast”). Essex management held a
conference call to discuss the Coast acquisition on November 17,
2010. An archived version of this conference call is available via
webcast and may be accessed at http://investor.essexcrane.com/events.cfm.
Essex
will operate the predecessor Coast business through a new, wholly-owned
subsidiary, called Coast Crane Company. The Coast business will be
operated independently of Essex’s existing operating business, Essex Crane
Rental Corp. (“Essex Crane”). Coast’s management team will continue
to be led by Dan Goodale, the CEO of Coast’s predecessor.
Essex
paid approximately $80 million for Coast’s assets, approximately $48 million of
which is being financed by a new $75 million, four–year, interest only,
non-amortizing senior credit facility. Essex also assumed
approximately $12 million of predecessor Coast indebtedness. The
acquisition price reflects a significant discount to the replacement value of
Coast’s assets. For the twelve months ended September 30, 2010, Coast
generated revenues of approximately $85 million, based on Coast’s unaudited
financial information for such period. Essex expects the operations
of Coast to be meaningfully accretive to Essex’s 2011 free cash flow per share
and as of the closing is accretive to net asset value per share.
Ron
Schad, President and Chief Executive Officer of Essex, commented, “The
acquisition of Coast broadens our product offering to include assets that are
contiguous and complementary to our existing fleet of crawler cranes, expands
our geographic reach into Western North America, Alaska, Hawaii, Guam and
the South Pacific, and adds a proven, respected group of industry professionals
to our management and operating teams. In combination with what we
believe are improving conditions in our end markets, we expect that these
factors will allow us to leverage the meaningful customer and project overlap
that the two companies share, and drive higher asset utilization. We
are very excited about the acquisition of Coast and the opportunities that lie
ahead.”
Mr.
Goodale added, “We are confident that Coast is well-positioned to maintain, and,
over time, significantly expand, its industry leadership position. We
remain unwavering in our commitment to our customers, employees, and other
stakeholders, and look forward to working with Essex to build upon our 40-year
history of specialization, innovation and success.”
About
Essex Rental Corp.
Essex,
through its subsidiaries, Essex Crane Rental Corp. and Coast Crane Company, is
one of North America's largest providers of mobile cranes (including
lattice-boom crawler cranes, truck cranes and rough terrain cranes),
self-erecting cranes, stationary tower cranes, elevators and hoists, and other
lifting equipment used in a wide array of construction projects. In addition,
the Company provides product support including installation, maintenance,
repair, and parts and services for equipment provided and other
equipment used by its construction industry
customers. With a fleet of over 1,000 cranes and other
construction equipment and unparalleled customer service and support, Essex
supplies a wide variety of innovative lifting solutions for construction
projects related to power generation, petro-chemical, refineries, water
treatment and purification, bridges, highways, hospitals, shipbuilding, offshore
oil fabrication and industrial plants, and commercial and residential
construction.
About
Coast Crane Company
Founded
in 1970, Coast Crane Company has grown to become the market leader for
innovative lifting solutions throughout Western North America, Alaska,
Hawaii, Guam and the South Pacific. The Company provides both used and new
equipment including rough terrain cranes, boom trucks, tower cranes, and other
lifting equipment. Products are rented and sold through a regional
network including 13 branch locations and covering over 3,000 customer
accounts. Coast Crane enjoys strong working partnerships with the leading
crane and lifting manufacturers in the U.S. and has a dedicated and unparalleled
customer service and support team.
Some of
the statements in this press release and other written and oral statements made
from time to time by Essex, Coast and their respective representatives are
“forward-looking statements” within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. These statements include statements regarding the intent and belief
or current expectations of Essex, Coast and their respective management teams
and may be identified by the use of words like "anticipate", "believe",
"estimate", "expect", "intend", "may", "plan", "will", "should", "seek", the
negative of these terms or other comparable terminology. Investors are
cautioned that any such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual results may
differ materially from those projected in the forward-looking
statements. Important factors that could cause actual results to
differ materially from Essex’s or Coast’s expectations include, without
limitation, the continued ability of Essex and Coast to successfully execute
their respective business plans, the possibility of a change in demand for the
products and services that Essex provides (through its subsidiary, Essex Crane)
and that Coast provides, the failure to obtain Bankruptcy Court approval of the
Coast acquisition, intense competition which may require us to lower prices or
offer more favorable terms of sale, our reliance on third party suppliers, our
indebtedness which could limit our operational and financial flexibility, global
economic factors including interest rates, general economic conditions,
geopolitical events and regulatory changes, our dependence on our management
team and key personnel, as well as other relevant risks detailed in our Annual
Report on Form 10-K and other periodic reports filed with the Securities and
Exchange Commission and available on our website, www.essexcrane.com. The
factors listed here are not exhaustive. Many of these uncertainties
and risks are difficult to predict and beyond management’s
control. Forward-looking statements are not guarantees of future
performance, results or events. Essex assumes no obligation to update or
supplement forward-looking information in this press release whether to reflect
changed assumptions, the occurrence of unanticipated events or changes in future
operating results or financial conditions, or otherwise.
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CONTACT:
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INVESTOR
RELATIONS:
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Essex
Rental Corp.
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The
Equity Group Inc.
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Martin
Kroll
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Melissa
Dixon
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Chief
Financial Officer
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Senior
Account Executive
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(847)
215-6502 / mkroll@essexcrane.com
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(212)
836-9613 / mdixon@equityny.com
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Devin
Sullivan
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Senior
Vice President
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(212)
836-9608 / dsullivan@equityny.com
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