Stephenson’s Finalizes A1 Acquisition

May 30, 2006
Stephenson’s Rental Services announces acquisition of A1 Equipment Rental.

Stephenson’s Rental Services last week announced that its acquisition of A1 Equipment Rental has been finalized. The final purchase price of CD $43.8 million was financed with available credit facilities.

A1 is the second largest independent rental company in the greater Toronto area, with locations in Toronto, Durham and Oakville, Ontario. A1 reported revenue of CD $16.6 million and adjusted EBITDA of $7.5 million in 2005.

“We have an integration team established and will move quickly to combine the A1 operations with the existing Stephenson’s business,” said James McInnis, Stephenson’s vice president and chief financial officer. “In the near term, we expect to realize rationalization savings at A1, given the overlap with Stephenson’s existing infrastructure.”

“The addition of A1’s modern rental fleet as we head into the busy summer construction period positions Stephenson’s well to capture additional revenue from new and existing customers,” added Stephenson’s president and CEO Willie Swisher. “With Stephenson’s established hub-and-spoke distribution infrastructure, we expect to improve the utilization of A1’s fleet, providing for incremental revenue opportunities.”

Stephenson’s, based in the Toronto suburb of Mississauga, Ontario, is No. 48 on the RER 100.

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