Houston-based construction equipment rental company liquidating
Houston-based Prime Equip Solutions, a construction equipment rental company that changed hands twice since 2012, is liquidating its assets.
Tiger Group is handling the asset sales in cooperation with Liquidity Services, according to a Jan. 30 press release.
The assets include late-model telescopic and articulated boom lifts, excavators, wheel loaders, single-drum rollers, backhoes and track loaders. On-site visits are being held by appointment at Prime Equip’s 45-acre facility at 505 Rankin Road.
“In addition to the discrete asset sales, Prime Equip still has equipment out with customers on rental agreements that run through January and February,” Tiger Executive Managing Director Jeff Tanenbaum said in the press release. “Those agreements may be available for assumption as an ongoing revenue source.”
Prime Equip’s Rankin Road facility originally was owned by Dallas-based Bane Machinery Inc. The Houston facility opened in 2008, according to the Jan. 30 press release.
In 2012, Toronto-based Texada Software Inc. expanded to the Houston market with a $2.2 million deal to acquire assets from Bane Machinery’s Houston subsidiary. Shortly thereafter, Texada changed its name to Noble Iron Inc.
“Along with the purchase of earth moving assets from Bane, the company retained all of the Houston based employees and an active customer list,” the company said in its 2012 press release announcing the deal closed. “In addition, the company entered into a lease on the property currently occupied by Bane Machinery’s Houston operations.”
However, Noble Iron sold its stake in Noble Rents (TX) Inc., which operated the company’s Houston operations, in 2016 for $6.24 million. According to a November 2016 press release, an undisclosed “arm’s length third party” bought the Houston operations and assumed an existing asset-backed credit facility in the principal amount of $5.63 million. Noble Iron received net proceeds of $610,000, composed of $500,000 in cash and $110,000 as an unsecured promissory note due in November 2017.
After the 2016 buyout, “the company continued to grow, but throughout 2017 faced stiff local competition and difficulty reaching utilization targets with the wide range of assets in its fleet,” the Jan. 30 press release states. “These conditions led to the decision to close the business in early 2018.”