Management buy-out complete at Hamilton Rentals with Backing from RBS
July 2008 – Bracknell-based Hamilton Rentals, the UK's largest IT and AV rental company, has announced the successful completion of a management buy-out (MBO) of the company from 2e2, a leading provider of mission-critical IT services with backing of more than £9.5million from The Royal Bank of Scotland ("RBS").
This MBO makes Hamilton Rentals an independently owned company once again. It was formerly a separate division of Compel, a company that was acquired by 2e2 in March 2007.
Hamilton Rentals works with leading vendors to deliver the appropriate technology solution to meet customer's needs. It has strategic alliances with leading IT vendors such as SUN Microsystems, Hewlett Packard, IBM, Lenovo and Microsoft to allow customers to choose from the UK's largest stock of IT & AV rental equipment of £20m available for next-day delivery anywhere in the UK and Europe.
The ambitious Hamilton Rentals management team sought to grow the business further and approached 2e2 with the MBO offer. 2e2 accepted the proposal, given that equipment rental is not a core part of its business.
In order to facilitate this strategic MBO Hamilton Rentals worked with RBS who provided a bespoke funding solution. Andy Matthews from the RBS Structured Debt Solutions team, specialists in financing leveraged transactions, led the Bank's team comprising David Copping, Steve George from RBS Invoice Finance, which provided working capital facilities, and Richard Henderson and Ian McIvor from the asset finance provider Lombard Technology Services, part of The RBS group. Lombard's division, which has expertise in the technology sector, provided sector specific funding to Hamilton Rentals as an IT company. A revolving credit facility was put in place releasing additional funds supporting the MBO.
Martin O'Connor, MD of Hamilton Rentals commented:
"The support of a large company such as 2e2 has been a real benefit to us from a financial point of view, but being independently
owned means that both our existing and potential customers see us in a different light. By removing the link to a larger organisation,
Hamilton Rentals can now move into channels which may not have been previously open to us.
"I am grateful to RBS, which has worked closely with the Hamilton Rentals management team to understand our business aspirations and long-term goals. As a result the bank tailored an effective funding package enabling this strategic MBO to take place."
Andrew Matthews, Associate Director, Structured Debt Solutions at RBS Commercial Banking added:
"I am delighted to see the Hamilton Rentals management team come into its own as independent managers of the business.
The team is incredibly capable and has both the experience and the ambition to grow the business further.
"The RBS team worked closely to understand all aspects of the business and accordingly provided a bespoke funding solution, fully exploiting the bank's specialist banking divisions to help ensure the most effective funding solution was provided."
Nick Grossman, Business Development Director at 2e2 commented:
"Hamilton Rentals is an excellent business and the leader in its market within the UK. We are delighted that management have
decided to take the business forward under their experienced and capable ownership. I'm sure that they will flourish and
wish them every success."
- Ends -
For more information, please contact:
Emma Lyons
Media Manager, The Royal Bank of Scotland
Tel: + 44 (0) 7771 938 563
Email: emma.lyons@rbs.co.uk
Notes to Editors
The Royal Bank of Scotland Group:
The RBS Group is one of the world's leading financial services companies providing a range of retail and corporate banking,
financial markets, consumer finance, insurance, and wealth management services. RBS Group operates in over 50 countries across
Europe, the Americas, Asia and the Middle East serving more than 40 million customers and employing more than 170,000 people.
In addition to the provision of a full range of banking services under The Royal Bank of Scotland and
NatWest brands, RBS Group also includes ABN AMRO, Citizens Financial Group, Ulster Bank, Coutts Group, Direct Line and Churchill.
