Platinum Equity announced it has signed a definitive agreement to acquire Volvo Rents from the Volvo Group. Volvo Rents is a North American provider of small-to-medium sized rental equipment serving a diverse customer base across multiple industries, including construction, oil and gas, industrial manufacturing, infrastructure, power and metals and minerals.

Platinum Equity chairman and CEO Tom Gores said he is pleased about the strong relationship developed with the Volvo Group.

“This transaction is the culmination of hard work on both sides. We appreciate Volvo’s trust in selling us the business and in our ability to execute a complex carve out,” said Gores. “We will collaborate with Volvo, the Volvo Rents management team and its employees and customers to ensure success.”

The transaction is subject to regulatory approval and certain closing conditions, and is expected to be completed in the first quarter of 2014.

“We looked at different alternatives to grow Volvo Rents’ business and concluded that the best alternative is to sell the operation to Platinum. This new owner structure will ensure a continued strong development of Volvo Rents,” said Olof Persson, Volvo Group president and CEO.

Platinum Equity currently owns Maxim Crane, a full-service provider of crane rental and lifting services, and Nesco, a provider of utility equipment rentals, sales and services for the electrical transmission and distribution markets.

“We have a great deal of experience owning and operating equipment rental businesses and we understand the importance of seamless transitions and long-term operational stewardship,” said Louis Samson the partner who led the transaction team at Platinum Equity. “With over 130 branches across North America, Volvo Rents represents a tremendous platform to build upon. We intend to deploy our resources to grow the business organically and through complementary add-on acquisitions.”

Earlier this year Platinum Equity completed raising Platinum Equity Capital Partners III, a $3.75 billion buyout fund focused on investing in businesses that can benefit from Platinum Equity’s operational expertise. Among the transactions Platinum Equity has completed in 2013 are several corporate divestitures, including transactions with AP Moeller Maersk, CBS, CheckPoint Systems, Emerson and Deutsche Post DHL.