Kirtland paid more than $180m for Essex, when it bought it in May 2000. Kirtland made back its investment in March 2007, through a dividend recapitalisation. In the last year, Essex achieved revenues of $64.2m, for a earnings before interest, tax, deductions and amortisation (Ebitda) of $37.2m. Since 2003, the Chicago-based rental firm has average annual revenue growth of 31%.
Hyde Park was set up with an IPO in March 2007, which raised net proceeds of $99.7m. At the time, Levy promised the firm would make an acquisition in one of the infrastructure, logistics, distribution or manufacturing sectors within two years, or return investors funds.
The current deal is made up of $100m in equity from Hyde Park, a $5m investment from Essex’s management, a further $5m rolled over from the existing owners, $1m from Macquarie Capital, and a $117m secured loan from a group of lenders. When the deal is complete, Hyde Park will be renamed Essex Crane Rental Corp, and will be listed on the Nasdaq stock exchange.