June 20, 2024

Phoenix, AZ – Compactor Rentals of America, LLC (“CRA”), a portfolio company of Kinderhook Industries, LLC, announced today the acquisition of Pak-Rite Rentals, LLC (“Pak-Rite” or the “Company”). Financial terms of the transaction were not disclosed. Pak-Rite represents CRA’s first acquisition since its recapitalization by Kinderhook in January 2024.

Founded in 1994 and headquartered in New Palestine, Indiana, Pak-Rite is a leading lessor of waste compactor and baler equipment across a diverse base of end-markets nationwide, with a notable presence in the Midwest and Southeast. The acquisition substantially enlarges CRA’s fleet, while expanding its footprint into adjacent geographic markets. With approximately 11,000 compactors on rent, the combined company is the largest pure play compactor rental company in the United States. Further, the combination creates a more reliable service network across the nation, improving CRA’s ability to minimize asset downtime and ensure high-quality customer service across its portfolio.

Pak-Rite Founder and President Ray Hobbs will assume the role of Chief Operating Officer of CRA and join the Board of Directors post-closing. “While we have seen significant growth in our business over the past few years, we are really excited to see what we can accomplish with the support of CRA and Kinderhook,” said Hobbs. “Our entire team is ready to hit the ground running and ensure our customers experience the same high-quality service we have provided for the past 30 years.” Along with Mr. Hobbs, the entirety of the Pak-Rite team will be joining CRA post-close.

“CRA is excited to partner with Ray Hobbs and the entire Pak-Rite team,” said Kelly Williams, Chief Executive Officer of CRA. “Ray and his team have built a tremendous business and are highly respected within the industry. The transaction will provide CRA with significant scale and our shared commitment to service will ensure a top-tier customer experience across the platform.”

“Pak-Rite’s high-quality asset base coupled with its tenured customer relationships makes the acquisition a tremendous opportunity for CRA. The Company is well positioned to capture market share as it looks to build density on a national scale,” said Rob Michalik, Managing Director at Kinderhook. “We believe Pak-Rite’s team will fit seamlessly into the CRA culture, and we look forward to collaborating with them to drive the next phase of growth.”

Sidley Austin LLP served as legal counsel to Kinderhook. Financing for the transaction was provided by a syndicate led by Comerica Bank with participation from Webster Bank, Fifth Third Bank, Huntington Bank, and First Merchants Bank.

For additional information about this transaction, please contact: 
Robert Michalik
Managing Director
(212) 201-6789
[email protected]
 
Corwynne Carruthers
Managing Director
(212) 201-6799
[email protected]
 
Sam Keenan
Managing Director
(212) 201-6795
[email protected]