As part of the stock purchase agreement, Maxim will acquire all of the issued and outstanding shares of Coast's parent company, CC Acquisition Holding Corp., for $72.5 million, subject to closing date working capital and other adjustments. The sale has been approved by Essex's Board of Directors and is expected to close in the second quarter of 2017. The transaction is subject to customary closing conditions and the approval of Essex stockholders. A special meeting of Essex stockholders to approve the sale will be held on a date to be announced.
Following the closing, Maxim will begin integrating Coast with its existing operating business. Maxim said customers will continue to receive the same high quality service they have come to expect and that through its coast-to-coast footprint, and its engineering, operated rentals, and heavy haul services, the Coast team and customers will gain access to one of the largest modern fleets of full service lifting solutions in the world.
Bryan Carlisle, chief executive officer of Maxim, stated, "Coast Crane offers one of the most experienced teams of crane professionals in the region. Its state-of-the-art fleet provides customers with a "best in class' brand of products, parts, services and rental equipment. We are confident that the combination of Coast and Maxim will bring added value to our combined customer base, employees and the industry."
Nick Matthews, chief executive officer of Coast, said, "We believe that this transaction delivers the best current return for our shareholders and provides a good opportunity for our employees to work for a company positioned for growth due to its experienced management team, future business prospects and strong balance sheet."