Maxim to acquire Coast Crane

Maxim had previously acquired Essex’s core crawler fleet in September 2016.

Maxim traces its history to the fleet built up by Ray Anthony, initially in Pittsburgh, in the 1980s and 90s, which included one of the first hydraulic cranes in the USA.  The acquisition of AmQuip, itself built up via a series of mergers and acquisitions as well as organic growth, strengthened the fleet largely on the East Coast, as did that of Essex’s crawler assets.  The purchase of Crane Rental Corp added heavy lift capacity (including a giant Manitowoc Model 31000) and extended the company’s reach in the Gulf Coast. 

The latest deal will further strengthen Maxim's well-established presence on the West Coast.  Currently, Maxim has three locations in California and one in Washington.  Once the acquisition of Coast is complete, it will add three locations in Washington, three in California, one in Oregon, and one across the Canadian border in British Columbia. Most significantly, it will add to Maxim’s current project-focused business in the North West with a broader general operations business.

Coast also has depots in Alaska, Hawaii, Texas, Louisiana and Illinois.

Founded in 1970 and based in Seattle, Washington, Coast offers crane rental and related lift solutions, servicing the West Coast of the United States.

Pursuant to the stock purchase agreement, Maxim will acquire all of the issued and outstanding shares of Coast's parent company, CC Acquisition Holding, for $72.5m, subject to closing date working capital and other adjustments.

The sale has been approved by Essex's board of directors and is expected to close in the second quarter of 2017. The transaction is subject to customary closing conditions and the approval of Essex stockholders. A special meeting of Essex stockholders to approve the sale will be held on a date to be announced.

Following the closing, Maxim will begin integrating Coast with its existing operating business.

Bryan Carlisle, chief executive officer of Maxim, said: "Coast Crane offers one of the most experienced teams of crane professionals in the region. Their state of the art fleet provides customers with a ‘best in class' brand of products, parts, services and rental equipment. We are confident that the combination of Coast and Maxim will bring added value to our combined customer base, employees and the industry."

Nick Matthews, chief executive officer of Coast, said: "We believe that this transaction delivers the best current return for our shareholders and provides a good opportunity for our employees to work for a company positioned for growth due to its experienced management team, future business prospects and strong balance sheet."

The stock purchase agreement provides for a "go-shop" period during which the board of directors of Essex may evaluate alternative proposals.