Sunbelt Rentals (U.S. subsidiary of the UK's Ashtead Group PLC) has acquired Baton Rouge-based Empire Holdings for $38 million. An additional $1.5 million cash consideration may also become payable depending on Empire’s profits up to August 31, 2011.
Empire has seven branches in Louisiana, Texas, Alabama and Tennessee, and is a specialist provider of scaffold rental, erection and dismantling services primarily to Gulf Coast petrochemical industries. In the year ended August, 2010, Empire reported revenues of $42 million and a pre-tax profit of $4.0 million. Gross assets were $35 million.
Empire will operate as a wholly owned subsidiary within Sunbelt’s scaffold division. Its key managers will remain with the business.