Private equity firm Carlyle Group and Seven Group Holdings said this week they plan to retain ownership of Coates Hire Ltd., Australia’s leading equipment rental company. The decision, announced on Seven Group’s website, was made following a six-month review of the rental business. Carlyle and Seven appointed Goldman Sachs in November to carry out a review of the business for a potential sale after failing to proceed earlier last year with an A$800 million initial public offer.
Carlyle and Seven said the review, assisted by China International Capital Group in China and Nomura holdings in Japan, had been completed and the groups were fully committed to growing the business. “Both SGH and Carlyle remain fully committed to the business and continuing to grow Australia’s leading rental company,” Seven Group said in a statement.
Carlyle and Seven each own 46 percent of Coates, which had revenue of A$1.3 billion (about U.S. $1.2 billion) in the year to June 2012. Coates has 200 branches in Australia, serving engineering, construction, mining and manufacturing industries.
Carlyle purchased its 46-percent stake in Coates in 2008.