Maxim Crane Works and Essex Rental entered into a stock purchase agreement pursuant to which Maxim will acquire Coast Crane, an indirect wholly-owned subsidiary of Essex. Founded in Seattle, Wash., in 1970, Coast Crane is one of the largest bare crane rental companies on the West Coast. Following the closing, Maxim will begin integrating Coast with its existing operating business.
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 $72.5 million, subject to closing date working capital and other adjustments.
In conjunction with entering into the stock purchase agreement, Coast entered into a fifth amendment to its second amended and restated credit agreement with Wells Fargo as agent for the lenders thereunder. The amendment extends the maturity date of the Coast credit facility to Aug.14, 2017, and includes certain milestones with respect to the sale of Coast, including receipt of stockholder approval to the sale no later than June 30, 2017.
The stock purchase agreement provides for a “go-shop” period during which the board of directors of Essex may evaluate alternative proposals.
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.
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