MIAMI- Neff Corp. announced that it signed a definitive agreement to sell its 65 percent equity interest in Sullair Argentina to its president, Alejandro Oxenford.
"The sale of our interest in Sullair Argentina is an important first step in our previously stated objective of increasing shareholder value through the strategic evaluation process we initiated earlier this year," said Kevin Fitzgerald, Neff's president and CEO.
Neff will receive $42.5 million from the sale of its equity interest in Sullair Argentina. The transaction is expected to close by the end of the year. Sullair Argentina had aggregate 1998 revenues of approximately $54 million.
An industry analyst said the sale might help pave the way for Neff Corp. to sell its rental division. While some prospective buyers have shown interest in acquiring Neff Rental, few were interested in taking on its international commitments.
Neff Rental - No. 6 on the RER 100 - has 94 locations in 18 U.S. states.
1994, the 10 largest rental companies combined to top $1 billion in rental revenue for the first time. The merger of United and U.S. Rentals would create a company larger than that entire group.
More than 110 start-up locations were opened in 1998 by RER 100 companies, led by Hertz Equipment Rental Corp. with 23 and Rental Service Corp. with 20.
Source: RER's 1999 Consolidation Report