NEW YORK Light Tower Rentals, which provides rental equipment and services to the oil field industry, is exploring a sale that may fetch around $700 million, according to people familiar with the matter.
The privately-held company, known as LTR, is working with RBC Capital Markets (RY.TO) to find a buyer, the people said on Thursday, asking not to be named because the matter is not public.
Representatives for LTR and RBC did not immediately respond to requests for comment.
LTR was founded in 1994 as a company renting lighting equipment for use at oilfield job sites. In 2008, the company took on Canadian financial firms Clairvest Group Inc and McKenna Gale Capital as investors to fund expansion.
The company has around $85 million in annual earnings before interest, tax, depreciation and amortization (EBITDA) and may be sold for roughly 8 times that amount, the people familiar with the matter said.
It joins a string of equipment rental companies that have gone on the block over the past year.
Buyout firm Platinum Equity recently sold NESCO, which provides fleet equipment rental services for electrical transmission and distribution markets in North America, to Energy Capital Partners.
In October, energy-focused buyout firm First Reserve Corp bought TNT Crane & Rigging Inc from private equity owner Odyssey Investment Partners LLC, in a deal estimated to be worth between $700 million and $800 million.
Also on the block currently is NC Services Group, which offers crane rental and heavy haul services for construction and energy industries and is working with Goldman Sachs Group (GS.N) to find a buyer.
(Reporting by Soyoung Kim and Greg Roumeliotis in New York; Editing by Bernadette Baum)