11.04.2005

Neff bought by Odyssey

An affiliate of Odyssey Investment Partners has acquired Neff Corp, North America’s ninth largest rental company. The deal is worth $510 million, including debt. Neff management will retain a significant share in the company.

Neff operates from 66 depots in the Southeast and western United States, with a customer base of around 20,000 customers.

Revenues in 2004 were in the region of $250 million.
Odyssey is paying $240 million, less expenses connected with the acquistion. This is expected to net out at around $8.25 a share in cash.

In addition Odyssey will take on Neffs debt.
Odyssey is aiming to fund the transaction with the proceeds of newly issued debt securities and other borrowings. Odyssey recently closed a $750 million private equity fund formed to pursue control investments and management buyouts of middle-market companies.

Neff will continue to be based in Miami and with the same management team.