Toronto-based Stephenson's Rental buys Oxford Builders assets
By Murray Pollok17 November 2009
The deal, concluded at the start of November with the support of private equity form EdgeStone Capital Partners, includes a rental agreement with EllisDon as well as the opportunity to establish a rental business in the London area where EllisDon is based.
The fleet acquired from Oxford Builders has a ‘first cost' value of around C$10 million (€.4 million) and the acquisition includes an arrangement whereby EllisDon will give Stephenson's the first option on all its rental contracts on sites within 50 km of a Stephenson's store. Stephenson's will also operate a rental desk inside EllisDon's head office.
Oxford will continue to provide cranes, safety fence, shores, perimeter fence and formwork to its customers.
"Stephenson's vast array of products, store network and logistics capability across Ontario make them a natural to supply general rental equipment to our projects", said John Bernhardt, senior vice president and chief financial officer of EllisDon.
Victor Guerreiro, Stephenson's vice president, fleet and procurement, told IRN that it represented a very good transaction for the company; "We got assets and a platform to operate a store in a new market, London."
The Oxford Builders fleet matches Stephenson's, although Oxford has around 200 aerial platforms, which will boost Stephenson's aerials fleet to around 800-900 machines.
Stephenson's Rental Services operates from 19 locations in the greater Toronto area. In addition to its general equipment rentals the company also has large scaffolding and heating rental divisions.