Private equity firm Apollo Global Management has signed a definitive agreement to acquire AmQuip Crane Rental and Maxim Crane Works and merge the two crane rental powerhouses. Together the two companies will represent a fleet of close to 2,000 cranes, based on 2015 data from the American Cranes & Transport ACT100 list of top crane owning companies in North America.
“As you can imagine, we are very excited about this opportunity,” said Frank Bardonaro, president of Maxim Crane Works. “The employees and management teams of both companies know each other very well, and both companies have been owned by private equity firms over the past several years.”
Both companies complement each other very well, said Bardonaro.
“Crane industry customers are much more demanding and require greater geographic coverage these days, and this merger will allow us to serve the industry better, and it will allow for substantial expansion of our services,” he said.
Funds managed by affiliates of Apollo Global Management, will acquire AmQuip from affiliates of Clearlake Capital Group, L. P. and Maxim from affiliates of Platinum Equity.
“Upon the closing of these transactions, Apollo intends to combine Maxim and AmQuip, creating a premier lifting solutions provider operating a modern crane rental fleet comprising more than 1,950 cranes, a comprehensive set of value-added service capabilities and a broad geographic footprint across North America,” according to a press release from Apollo.
The proposed transactions are subject to regulatory approval and customary closing conditions. Financial terms were not disclosed.
Founded in 1967 AmQuip serves more than 6,600 customers through a network of 13 branch locations across 36 states. AmQuip operates one of the youngest crane fleets in the industry with more than 550 units with lifting capacities ranging from six to 716 US tons, the company said.
Founded in 1966 Maxim serves more than 7,500 customers through a network of 31 branch locations throughout the USA. The company operates more than 1,400 cranes, including a 2,500 ton capacity Manitowoc 31000, the largest crane in its fleet.
The combined company will include senior executives from each company, and both the AmQuip and Maxim brands will continue as part of the combined organization, according to the press release.
Bryan Carlisle, Maxim chief executive officer, is expected to serve as CEO of the combined business. Al Bove, AmQuip chief executive officer, will continue to run the AmQuip operation, serve on the combined company’s leadership team as well as play a senior role in the integration process.
"AmQuip and Maxim share similar cultures and values relating to people, safety and the desire to serve the industry,” said Carlisle. “This combination represents an opportunity for us to build a world class organization with the best people in the crane industry. We intend to run the business in the most effective manner possible, utilizing best practices of both organizations. This partnership will be mutually beneficial to both of our teams and, most importantly, to the customers we serve by providing an enhanced level of service, expertise, equipment and geographic coverage.”
“Our companies know each other well with ties that go back more than 30 years,” said Bove. “The teams on both sides throughout each organization are made up of the most experienced lifting solutions experts in the industry and the ability to work together going forward is exciting for everyone involved.”
Larry Berg and Antoine Munfakh, partners at Apollo Global Management, said, “We are tremendously excited by this unique opportunity to combine two premier businesses in the North American lifting services market. Both Maxim and AmQuip have built exceptional reputations and customer relationships through the depth of their employee talent and their commitment to providing the highest levels of customer service. Through this transaction and by leveraging the talent of both companies, we believe the combined organization can deepen and broaden these relationships and better serve its customers’ critical lifting solutions needs. We see many compelling growth and innovation opportunities in the market, and we look forward to bringing Apollo’s resources to bear in helping Bryan and Al achieve their long-term strategic objectives.”
Platinum Equity Partner Louis Samson, who led the acquisition of Maxim, said, “We are proud of everything Maxim has achieved during our stewardship. The company today is a fundamentally strong business with great leadership, talented employees, sound business practices and all the tools it needs to help lead the industry for years to come. Maxim has proven its ability to successfully grow organically and through acquisition, and now combining forces with AmQuip is a logical and exciting next step.”
“We are pleased to have sponsored AmQuip during a period of significant growth and transformation. AmQuip’s foundation as a leader in the lifting solutions market, plus its top-notch safety record and stellar reputation, position the company well for its new partnership with Maxim,” said José E. Feliciano, founder and managing partner at Clearlake. "We remain strong believers in AmQuip’s vision, people, and the tremendous value they bring to this combination."