07.07.2015

Essex Crane abandons sale

US crane rental company Essex Crane has announced that it has dropped plans for a sale and its search for strategic alternatives. See Essex seeks alternatives . It has also announced a number of changes to the business, which it says will save around $500,000 a year.

The changes influenced, says the company by investor feedback, include:

Disbanding the Strategic Planning and Finance Committee.

Ending the lease of office space in New York City from Hyde Park Real Estate.

Cutting the number of board directors from six to five and cutting the cash
compensation in half, with stock making up the shortfall.

Appointing Bill Fox as chairman of both the Nominating and Governance
Committee and the Compensation Committee.

Chief executive Nick Matthews said: "The steps that the board has taken are consistent with our commitment to maintain strong corporate governance practices and reduce costs, and will further align our Company's leadership with the interests of our investors. We anticipate realising approximately $500,000 in annualised cost savings as a result of these changes."

“We continue to execute on our operating initiatives and the board remains dedicated to evaluating every available option to maximise stockholder value. However, after reviewing market feedback assembled by our financial advisor the board has elected not to continue the strategic evaluation process with respect to Essex Crane or the company as a whole. The information we received during this process has been valuable and the board intends to maintain an ongoing dialogue with RBC.”