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Carlyle, Seven Group plan Coates Hire sale

  • Alvina Yuen
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The Carlyle Group and Australia's Seven Group are planning to sell their stakes in Australian equipment rental company Coates Hire. The news comes after the pair failed to proceed with an A$800 million ($831 million) IPO of the company earlier this year.

Carlyle and Seven Group have appointed Goldman Sachs to co-ordinate a strategic review of a possible sale. The review will commence immediately and take several months. According to a statement, Goldman Sachs will be assisted by China International Capital Corp. in China and Nomura in Japan.

In January 2008, Coates Hire was privatized by Carlyle and National Hire Group, which was acquired by Seven last December. The hire businesses of National Hire Group and Coates Hire were subsequently merged.

Carlyle and Seven currently own 46% each in Coates, which has revenues of A$1.3 billion for the year to June 2012. With over 125 years' experience in the industry, Coates operates over 200 branches and satellite locations in Australia across industries such as engineering, building construction and maintenance, mining and resources and manufacturing.

Coates was said to be considering an IPO by the end of August after banks agreed to refinance the company's A$1.85 billion in debt. At that time, Carlyle and Seven reportedly planned not to offload their stakes in the business via the IPO.

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