Rental Equipment Investment Corp. (REIC), a portfolio company of Kinderhook Industries LLC, announced the acquisition of Cahill Services. Cahill represents REIC’s second add-on acquisition under Kinderhook’s ownership and REIC’s 14th since its inception. The financial terms of the transaction were not disclosed.
Cahill is a provider of specialty rental solutions for high-demand, critical applications across infrastructure, construction, and industrial maintenance markets. Founded in 2015 and headquartered in Livonia, Mich., Cahill operates four service centers in Canada and two service centers in the United States. Cahill is one of the largest “pure-play” specialty rental service providers of critical climate control and lighting equipment including proprietary flameless heaters and hybrid light towers. REIC’s acquisition of Cahill represents a unique opportunity to add a growing, differentiated specialty rental model that leverages both proprietary technology and local market expertise to provide critical specialty rental solutions.
“We are excited to welcome the Cahill team to REIC,” said Kevin Fitzgerald, CEO of REIC. “Cahill’s patented JetHeat is the HVAC industry’s premier flameless heater, and a unique product offering that we are excited to roll out throughout our fleet. The JetHeat® helps customers achieve fuel savings, which in turn generates significant cost savings over the duration of a project.”
Dennis Haller, CEO of Cahill, added, “My team is thrilled about the opportunity to join REIC’s specialty rental division. Cahill has experienced tremendous growth in the past 24 months and will now have access to the additional resources of REIC to scale our business and continue capturing market share.”
“The acquisition of Cahill furthers REIC’s mission of becoming a national specialty rental provider and results in 12 standalone specialty rental locations across North America,” said Paul Cifelli, managing director at Kinderhook. “We are eager to partner with Cahill’s seasoned management team who have deep sector expertise and a long history of growing businesses in specialty rental.”
“Cahill’s built a strong foundation in the specialty rental market industry and will add new geographies and products to REIC’s existing fleet,” said Nate Druckenmiller, vice president, Kinderhook. “Kinderhook and REIC look forward to leveraging the capabilities of the combined businesses to accelerate growth.”
Kirkland & Ellis LLP served as legal counsel to Kinderhook. Prestwick Partners served as the Kinderhook Industries’ exclusive financial advisor and Winston & Strawn LLP acted as legal advisor to Cahill. Financing for the transaction was provided by a PNC Capital Markets bank syndicate, which included Flagstar Bank, Axos Bank, BancAlliance, Banc Hapoalim, First Merchants Bank, MUFG Union Bank, and Stifel Bank & Trust.
