Ashtead Group PLC announced last week that its U.S. subsidiary, Sunbelt Rentals Inc., has acquired Empire for an initial consideration of approximately $38 million, which was paid in cash at closing. An additional $1.5 million of additional cash consideration may also become payable depending on Empire’s profits in the year through Aug. 31, 2011.
Empire, based in Baton Rouge, La., with seven branches in the states of Louisiana, Texas, Alabama and Tennessee, is a specialist provider of scaffold rental, erection and dismantlement services to principally an industrial customer base in Gulf Coast petrochemical industries. In the fiscal year ending Aug. 31, 2010, Empire reported revenues of $42 million and a pre-tax profit of $4 million. Its gross assets $35 million.
“We are delighted to conclude this acquisition which is firmly in line with our long term strategy of developing high value added specialty businesses which broaden our product offering and the markets we serve and provide us with significant cross selling opportunities,” chief executive Geoff Drabble said. “Empire will operate as a wholly owned subsidiary within Sunbelt’s scaffold division with its key managers all remaining with the business.”
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