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Platinum Equity Acquires Electro Rent

June 3, 2016

June 3, 2016 — Electro Rent was acquired this week by Platinum Equity for $323.4 million. Electro Rent stockholders will receive $13.12 per share, representing a premium of 24.4 percent compared with the closing price on May 27, 2016, and 34.8 percent over the average closing price of Electro Rent’s common stock during the past three months.

Electro Rent has been providing alternative options to meet its customers’ test and measurement equipment needs for almost 50 years, including rent, purchase and leasing.

The agreement followed the unanimous recommendation of Electro Rent’s board of directors. Completion of the transaction, which is expected to close in the next 90 to 120 days, is subject to customary closing conditions, including approval of Electro Rent’s stockholders and various regulatory agencies.

Steven Markheim, recently named CEO of Electro Rent, and Allen Sciarillo, recently named Chief Financial Officer, will retain their current roles under the ownership of Platinum Equity.

Upon completion of the transaction, Electro Rent’s common stock will cease to be publicly traded. Houlihan Lokey acted as financial advisor to the Strategic Alternatives Committee of the Board of Directors of Electro Rent and Sheppard Mullin acted as Electro Rent’s legal counsel. Latham & Watkins serving as legal counsel to Platinum Equity.

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