Atlas Copco Completes Sale of RSC Equipment Rental
Stockholm, Sweden-based Atlas Copco Group has completed the sale of Rental Service Corp., Scottsdale, Ariz., to New York private equity firms Ripplewood Holdings, LLC and Oak Hill Capital Management, LLC.
According to Atlas Copco, the aggregate transaction value was approximately $3.4 billion (BSEK 24), plus up to $400 million (BSEK 3) of additional consideration in the form of notes, based on the achievement of profitability targets through 2008. Under the terms of the agreement, Atlas Copco is expected to receive approximately $3.3 billion in cash and assumed liabilities and retain an approximate 14.5% stake in the company. Ripplewood Holdings and Oak Hill Capital will be equal investment partners in the transaction, and both will share investment expertise in the equipment rental industry.
RSC's current management team will continue to lead the company and invest alongside Ripplewood Holdings, Oak Hill Capital, and Atlas Copco.