Odyssey Investment Partners to Acquire Neff Corp.

April 8, 2005 • Rental company Neff Corp., Miami, Fla., and Odyssey Investment Partners, New York, N.Y., announced they signed a definitive agreement under which an affiliate of Odyssey will acquire Neff in a transaction valued at $510 million, including the refinancing of Neff's debt.

 

Under terms of the agreement, which was unanimously approved by the Neff board of directors, Odyssey will acquire the equity of Neff for $240.5 million, less expenses incurred in connection with the transaction. As a result, it is currently expected that Neff stockholders will receive between $8.19 and $8.27 per share in cash for each share they own, although the actual price per share will depend on the costs of the transaction and will be determined prior to completion of the transaction.

In addition to Odyssey's equity investment, the transaction is expected to be funded with the net proceeds of certain newly issued debt securities and other borrowings. The financing for this transaction is subject to various conditions. Completion of the transaction, which is expected to occur in the second quarter of 2005, is subject to approval by Neff stockholders.

 

Following completion of the transaction, Neff will continue to be headquartered in Miami and will operate as a private company under the ongoing leadership of Juan Carlos Mas, president and chief executive officer, and other members of Neff management.

 

Neff operates 66 branches primarily located in the southeast and western regions of the United States. The company serves more than 20,000 customers • primarily mid-sized, regional and local construction firms, municipalities, utilities and industrial users • with a rental fleet of more than 10,500 major pieces of equipment. Neff generated a revenue of approximately $250 million in 2004.