Noble Iron’s wholly-owned subsidiary Noble Rents entered into an asset purchase agreement to sell the assets of its Los Angeles-based equipment rental operations to Sunbelt Rentals.

The purchase price is approximately $46.34 million, to be paid in cash, of which $1.37 million will be held in an escrow account for any adjustments to the purchase price following closing. At closing, the purchase price will be adjusted by increases or decreases in accounts receivable of the business and based upon certain potential adjustments relating to equipment fleet and accrued billings.

The closing of the transaction is subject to customary pre-closing conditions, including all necessary authorizations and consents, and final consent of the TSX Venture Exchange.

The specific assets to be acquired by the Sunbelt include all of the rental equipment fleet, vehicles, inventory, accounts receivable and other tangible personal property used in the business. Certain intangible assets, including tradenames and other sundry assets are not part of the agreement. Sunbelt’s obligation to close is conditional on, among other things, all encumbrances with respect to the acquired assets having been released.

This transaction does not involve Noble Iron’s software subsidiary, Texada Software, or the company’s intellectual property, trademarks and assets held separately from Noble Iron’s Los Angeles subsidiary.

Following the transaction, Noble Iron will continue to operate in the construction and industrial equipment sector through its software services, and plans to expand further through other potential strategic ventures.