Los Angeles, CA – Pacific High Reach and Equipment Services, Inc. (“Pacific High Reach” or the “Company”) has sold substantially all of its assets to Sunbelt Rentals, Inc. under Section 363 of the Bankruptcy Code for approximately $17.4 million. Sunbelt Rentals was selected as the highest and best bidder after a comprehensive sale process. The transaction was approved by the Bankruptcy Court on November 15, 2011 and closed on November 18, 2011. FocalPoint Securities, LLC (“FocalPoint”) served as the exclusive investment banker to Pacific High Reach. Ron Bender of Levene, Neale, Bender, Yoo & Brill L.L.P. (“LNBYB”) served as bankruptcy counsel to Pacific High Reach. Matthew Pakkala of FTI Consulting served as the Company’s Chief Restructuring Officer. Laura Contreras served as Chief Financial Officer.
“Sunbelt Rentals is an industry leader and this acquisition will help them expand their overall presence in the western region and capitalize on certain new niche market segments as well,” statedMatthew Pakkala. Mr. Pakkala went on to say: “This competitive sale process helped generate a substantial recovery to creditors. FocalPoint’s sound advice, commitment and expertise throughout the process was critical in achieving this result.”
Dan Conway, Managing Director at FocalPoint, commented, “The premium valuation achieved through this process has maximized value for all stakeholders. It could not have been accomplished without the full commitment of key employees and the contributions of LNBYB, FTI Consulting and Laura Contreras. We are pleased to be a part of such an outstanding team and outcome.”
About Pacific High Reach and Equipment Services, Inc.
Pacific High Reach, founded in June 2001, is a construction equipment rental company headquartered in Orange, California. The Company specializes in high-reach boom and forklift vehicles, with a rental fleet comprised of approximately 1,200 pieces of construction equipment. The Company rents its equipment to building contractors, power plants, refineries, airports and infrastructure construction sites in southern California, and is a major supplier to decorating companies at all southern California convention centers. The Company successfully expanded its operations through 2008 but was negatively impacted by the downturn in the economy in 2009 and early 2010, particularly the construction market in the Southwestern United States. The economic downturn led to substantial pricing pressure as demand for the Company’s services declined, spurring the Company’s decision to file bankruptcy and hire FocalPoint to explore strategic alternatives.
About FocalPoint Partners, LLC
FocalPoint is an independent investment bank specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm serves middle market clients throughout the U.S. For more information, please visit www.focalpointllc.com.
Please contact Dan Conway at [email protected] or 310-405-7010 with any questions about this transaction.