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Investment group to acquire Coates Hire

Australian diversified operating and investment group, Seven Group Holdings, will assume 100 per cent ownership of transport equipment rental company, Coates Hire.

Seven Group will acquire the 53.3 per cent stake in Coates that it does not already own from Carlyle Asia Partners for $517 million.

Seven Group has said that total ownership of Coates will enhance the company’s portfolio by expanding its industrial services division with the addition of an operating business.

The acquisition will be funded through Seven Group’s debt facilities and cash, including proceeds from the $540 million sale of its subsidiary, WesTrac China.

Seven Group managing director Ryan Stokes said the company was pleased to reach agreement with Carlyle to acquire the remaining Coates shares.

“We have had 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,” 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,” he said.

Seven Group has also announced $375 million in equity raising to provide capacity to support future portfolio enhancements following completion of the Coates Hire acquisition and other opportunities.

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