PLATINUM EQUITY TO SELL YAK ACCESS TO UNITED RENTALS FOR $1.1 BILLION

Rhea-AI Summary

Platinum Equity sells Yak Access, Yak Mat, and New South Access to United Rentals for $1.1 billion in cash, expected to close in Q1 2024. Yak, a leader in matting industry, serves utility and midstream verticals. Platinum Equity transformed Yak, enhancing service offerings and investing in R&D.

LOS ANGELES, March 4, 2024 /PRNewswire/ -- Platinum Equity announced today the signing of a definitive agreement to sell Yak Access, LLC, Yak Mat, LLC and New South Access & Environmental Solutions, LLC (collectively, "Yak") to United Rentals, Inc. (NYSE: URI) for approximately $1.1 billion in cash.

The transaction is expected to close in the first quarter of 2024, subject to limited contractual conditions.

Yak is a leader in the North American matting industry with a fleet of approximately 600,000 hardwood, softwood, and composite mats providing surface protection across both construction and maintenance, repair and operations (MRO) applications. Yak predominantly serves customers in the utility and midstream verticals.

Platinum Equity acquired a controlling stake in Yak in 2018 from Jones Companies and Beasley Forest Products.

"Over the past six years we worked with the Yak team to transform the business using the full range of Platinum's M&A&O® tool kit," said Platinum Equity Co-President Jacob Kotzubei. "Yak has evolved into a well-managed, diversified industry leader ready to take the next step as part of United Rentals."

The Yak divestiture marks the second time Platinum Equity has sold a business to United Rentals. In 2018, United Rentals acquired Blueline Rentals from Platinum Equity for $2.1 billion.

"United Rentals is an outstanding partner and a great long-term fit for Yak going forward," added Kotzubei. "Both companies have similar cultures with a shared commitment to safety, operational excellence and long-term customer relationships."

During Platinum's stewardship, Yak diversified and expanded its service offerings, implemented digital tools to enhance the customer experience, and invested in R&D to enhance mat longevity. The company also acquired Klein's Restoration Services, expanding Yak's footprint in the Midwest.

Following a successful restructuring of Yak's balance sheet last year, the company's momentum has accelerated as Yak entered 2024 with a strong backlog driven by continued new contract wins and sustained demand for its matting solutions. 

"We are proud of the work we did over the past six years and the value we created while navigating challenges posed by Covid-19 and fluctuations in the oil and gas market," said Platinum Equity Managing Director Matthew Louie. "Ultimately Yak emerged a stronger, more capable and resilient company ready for the next chapter."

Houlihan Lokey and J.P. Morgan Securities LLC have provided certain assistance to Platinum Equity in connection with the sale of Yak. Morgan Lewis is providing legal counsel to Platinum Equity.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $47 billion of assets under management and a portfolio of approximately 50 operating companies that serve customers around the world. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O^® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 28 years Platinum Equity has completed more than 450 acquisitions.

About Yak
Yak is one of the largest matting providers of ground protection and temporary roadway solutions in the United States. The company has an integrated network of more than 135 distribution points and operates in over 40 states. The company primarily serves powerline and pipeline customers, industrials, renewables, and other infrastructure related industries.  The company offers a full suite of solutions, including ~600,000 hardwood, softwood, and composite mats, temporary and permanent access roads, site evaluation, design and installation of access plans, and mat removal and logistics services. Yak is headquartered in Hattiesburg, Mississippi.

Contacts:

Dan Whelan
Platinum Equity
dwhelan@platinumequity.com

 

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SOURCE Platinum Equity

FAQ

What companies are being sold by Platinum Equity to United Rentals?

Platinum Equity is selling Yak Access, Yak Mat, and New South Access to United Rentals.

What is the expected transaction value for the sale?

The sale is valued at approximately $1.1 billion in cash.

When is the transaction expected to close?

The transaction is expected to close in the first quarter of 2024.

What industry does Yak primarily serve?

Yak primarily serves the utility and midstream verticals in the matting industry.

How did Platinum Equity enhance Yak's business during their ownership?

Platinum Equity diversified and expanded Yak's service offerings, implemented digital tools, and invested in R&D to improve mat longevity.