Classic Party Rentals acquired out of Chapter 11
By Murray Pollok25 April 2014
Private equity business Apollo Global Management is to acquire the world’s largest party and events rental business, US-based Classic Party Rentals, subject to regulatory approvals.
Apollo Global won a sale auction for the business as part of Classic’s Chapter 11 bankruptcy protection process. Classic entered Chapter 11 in February this year with a view to arranging the sale and refinancing of the business. The sale price has not been made public.
Classic employs 2500 in the US at 39 locations and reported annual revenues or around US$235 million.
“We are very excited to support the recapitalisation of Classic Party Rentals,” said Jason Scheir of Apollo Global Management.
“As the largest provider of event rental products in the United States, Classic has an outstanding reputation and leadership position in the markets it serves, and we believe that with a streamlined balance sheet the company is poised to capitalise on a number of attractive growth initiatives.”
Jeff Black, Classic Party Rental’s president and chief executive officer, said; “We are incredibly pleased with the outcome of this process and the acquisition offer by Apollo.
“Apollo is a powerful partner for Classic and has a strong understanding of our business and strategic vision. We appreciate the support that our lenders have provided through this process and for this transaction with Apollo. We believe this offer is the best outcome for Classic and all of our stakeholders.”
Apollo has offices in New York, Los Angeles, Houston, Toronto, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. It manages assets of approximately $161 billion.