Noble Iron announced it has entered into an asset purchase agreement to sell the assets of its subsidiary Noble Rents to Sunbelt Rentals for $46.34 million. Noble Rents is a Los Angeles-based equipment rental operation. The purchase price is to be paid in cash. $1.37 million will be held in as escrow account for any adjustments to the purchase price following closing.
The acquisition provides Sunbelt Rentals with a platform to expand in the L.A. market.
The closing of the transaction is subject to customary pre-closing conditions, including all necessary authorizations and consents, and final consent of the TSX Venture Exchange.
The specific assets to be acquired by Sunbelt include all of the rental equipment fleet, vehicles, inventory, accounts receivable and other tangible personal property used in the business. Certain intangible assets, including trade names and other sundry assets are not part of the agreement. The buyer's obligation to close is conditional on, among other things, all encumbrances with respect to the acquired assets having been released.
This transaction does 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. Following the transaction, Noble Iron will continue to operate in the construction and industrial equipment sector through its software services, and plans to expand further through other potential strategic ventures.
