24.12.2007

Coates acquisition completes

Australia's National Hire Group and private equity firm Carlyle Group have cleared the final hurdle in their takeover of Coates Hire after the Federal Court of Australia approved the deal on Thursday last week.

The court approved a scheme of arrangement that allows NED Group Holdings, a company set up and owned 50/50 by Carlyle and National Hire, to buy Coates Australia's largest equipment rental company. Ned will be headed by Coates' managing director Malcolm Jackman.

Coates shareholders had approved the deal earlier in the week with over 90 percent voting in favour. They will receive A$6.59 ($5.70) per share in cash valuing the business at over A$1.7 billion ($1.47 billion)

The merged businesses will have annual revenues of around A$990 million,($857 million) based on the companies' 2007 results. National Hire and Carlyle have said that they anticipate synergy benefits of more than A$30 million ($26 million) a year.