Noble Iron announced that the sale of its Los Angeles-based equipment rental operations to Sunbelt Rentals has been completed.
The total purchase price was $46.5 million in cash, of which $1.37 million is being held in an escrow account for 180 days following closing for any adjustments to the purchase price. The transaction did not involve Noble Iron’s software subsidiary, Texada Software, or the company’s intellectual property, trademarks and assets held separately from Noble Iron’s L.A. subsidiary.
“Sunbelt, a leading company in the industry, appreciated the value of the equipment fulfillment platform Noble Iron established in Los Angeles, and we are pleased to pass on our L.A. operations to a company who also embraces continuous improvement and technology,” said Nabil Kassam, Noble Iron founder, chairman and CEO. “Our L.A. fulfillment center also served as a lab for us to develop additional software applications, such as FleetLogic and Gateway, which improves the productivity of equipment rental companies and dealerships, and equipment owners and users. Our goal at Noble Iron is to make construction easy and instant, and we look forward to scaling our software products and other services to achieve our vision.”
The transaction received conditional approval to close from the TSX Venture Exchange and is subject to final approval following closing.
