Jan 21, 2022

Capstone Partners Advised Mahaffey USA on its Sale to Sunbelt Rentals, a U.S. Subsidiary of Ashtead Group (LSE: AHT)

Capstone Partners advised Mahaffey USA (Mahaffey or the Company) on its sale to Sunbelt Rentals, a U.S. subsidiary of the publicly traded Ashtead Group.

Based in Memphis, TN, Mahaffey has been the leading provider of temporary and semi-permanent commercial and industrial fabric structures for nearly 100 years. The Company designs, engineers, installs, and services a broad range of customizable structures, fabrics, and accessories to address almost any commercial or industrial application, including warehousing and storage, aviation hangars, blast-resistant structures, hospital and medical facilities, among many others. Mahaffey has become a trusted partner to many of the largest and most recognizable companies in the world, including dozens of Fortune 500 customers and the U.S. Military.

Capstone did an excellent job learning our business and successfully translated our business model into the buyer’s growth plans. Capstone was absolutely the right choice.

George SmithPresident & CEO, Mahaffey

After experiencing significant growth in the last decade—Mahaffey now has an extensive network capable of installing up to 10,000 square feet a day and has serviced customers in nearly every state—the Company looks forward to partnering with Sunbelt to further its growth. To maintain operational expertise and ensure a smooth transition, Mahaffey will retain its leadership team and Memphis-based support center.

The Capstone team distinguished itself over other investment banks because of their knowledge of our industry and familiarity with its nuances. Their strategic insights were invaluable to us throughout the negotiations, and I strongly recommend them.

William PretschChairman, Mahaffey

Ken Wasik, Managing Director at Capstone Partners, said, “Founders George Smith and William Pretsch are true industry visionaries, putting together the first nationwide commercial temporary structure business in the U.S. Credited for many of the most important innovations in the industry, their ability to quickly customize and erect the highest quality temporary structures anywhere in the U.S. has earned Mahaffey a roster of blue chip clients, and the business has expanded to include solutions for virtually any market, including the petrochemical, government, industrial, and healthcare industries. Indirectly, their services touch millions of lives when their temporary structures are deployed instantly during national disasters. It was an honor to work alongside George and William. We are elated by the outcome and believe Sunbelt is the perfect steward of the business going forward.”

Sam Matlin, Director at Capstone Partners, added, “Sunbelt’s acquisition of Mahaffey represents the first major acquisition within the highly fragmented market for commercial and industrial temporary structures, and Capstone was honored to advise and serve the Mahaffey shareholders in such an important transaction in the Company’s history. Mahaffey and Sunbelt have highly complementary products and served markets which offer meaningful near-term revenue synergies, while also serving as a platform for strong organic and acquisitive growth throughout the U.S. and internationally. Due to their convenience, flexibility, and cost-effectiveness, we expect temporary structures to continue to win market share as an emerging alternative solution versus more traditional permanent structures, which will spur even more acquisition interest for temporary structures businesses going forward.”

Based in Fort Mill, SC, Sunbelt Rentals is the premier rental equipment company in North America. It offers a highly diversified product mix including general construction equipment, industrial tools, pumps, power generation, climate control & HVAC, shoring solutions, scaffolding, remediation & restoration equipment, and more. With more than 14,000 employees, 900 locations, a diversified rental fleet that exceeds $10 billion, and more than 35 years of experience, Sunbelt Rentals is a global leader in the equipment rental space. Sunbelt is a fully owned subsidiary of Ashtead Group PLC, a London-based, publicly traded international equipment rental company with national networks in the U.S. and the U.K.