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Abstract
(Marketwire - May 5, 2010) - Finning International Inc. ("Finning") (TSX:FTT) announced today that it has sold Hewden, its UK equipment rental business, for gross proceeds of GBP 110.2 million or approximately C$171 million to an affiliate of Sun European Partners, LLP ("Sun European Partners"), the European adviser to Sun Capital Partners, Inc. ("Sun Capital"). The sale was completed today and the consideration comprises cash of GBP 90.2 million, an interest bearing 5-year loan note receivable of GBP 20 million and a 5% equity warrant subject to certain conditions being met. Finning will use the proceeds primarily to reduce debt.
"After a comprehensive review, we have determined that for strategic and financial reasons, it is in our shareholders' best interest to divest Hewden," said Mike Waites, president and chief executive officer of Finning International Inc. "While we believe that Hewden's broad product offering combined with our recent restructuring and national accounts focus will serve it well in the future, owning a large, short-term rental business operating separately from our UK dealership does not align with our strategic objectives. Finning remains fully committed to the UK Caterpillar dealership and its employees who are strongly positioned to serve the construction, mining and power systems markets."
"Going forward, Finning's UK dealership will continue to work closely with our plant hire customers to place Caterpillar equipment into the UK equipment rental market," added Andy Fraser, managing director of Finning UK Group. "Our market approach is to provide total solutions with extraordinary service and Caterpillar world class products. We are confident we can demonstrate the value of Finning to Hewden's new owners and maintain a productive commercial relationship with Hewden."