Stephenson's Rental Services Income Fund

Stephenson's Rental Services Income Fund
EdgeStone Capital Partners

July 17, 2007 18:19 ET

EdgeStone Acquires 80.9% of Stephenson's

TORONTO, ONTARIO--(Marketwire - July 17, 2007) - Stephenson's Rental Services Income Fund (the "Fund") (TSX:RNT.UN) and EdgeStone Capital Partners ("EdgeStone") (TSX:GMP.UN) today announced that 1731807 Ontario Inc. (the "Offeror"), an affiliate of EdgeStone Capital Equity Fund III (Canada) L.P., a fund managed by EdgeStone, has taken up and accepted for payment 7,914,606 units (the "Units") of the Fund pursuant to the Offeror's previously announced offer to purchase all of the Units for $6.875 cash per Unit (the "Offer"). The Units acquired by the Offeror represent all of the Units tendered pursuant to the Offer and approximately 80.9% of the issued and outstanding Units of the Fund. The Offeror expects to pay for the Units tomorrow.

As the Offeror has acquired more than 66 2/3% of the Units, it intends to effect an amendment to the Declaration of Trust of the Fund, as described in the Offer, which would permit it to purchase the Units held by non-tendering unitholders immediately on giving the appropriate notice to such non-tendering unitholders. The Offeror intends to effect such amendments, deliver the appropriate notice and pay for such Units tomorrow.

About EdgeStone

EdgeStone is one of Canada's leading private equity firms and has managed in excess of CDN$2.3 billion of private capital on behalf of institutional and high net worth clients. EdgeStone provides capital, strategic direction and business and financial advice to help promising mid-market and early-stage companies achieve their full potential. EdgeStone leverages the resources of its broad business network and ensures an alignment of interests to achieve superior returns for all stakeholders. EdgeStone is one of the principal entities of the GMP Capital Trust group (TSX:GMP.UN).

About the Fund

The Fund is the leading equipment and tool rental company in Toronto and the surrounding areas. Over the past 50 years, the Fund has grown from a single location into one of the top ten equipment rental businesses in Canada. Through its 18 branches, the Fund provides rental equipment and sells consumables to a diverse base of over 30,000 customers, divided into three primary categories: (i) residential, new construction; (ii) non-residential, new construction; and (iii) renovations.

Forward-Looking Statements

We make statements in this release that are considered forward-looking statements. Forward-looking information herein consists of disclosure relating to when payment for the Units will be made, and if and when the remaining Units will be purchased. These forward-looking statements are identified by the use of the words "expects," and "intends,". These statements reflect the Offeror's current intentions with respect to such actions and should not be read as a guarantee that such actions will occur as expected. These forward-looking statements are made as of the date of this release, and the Offeror assumes no obligation to update or revise them to reflect new events or circumstances.

A number of factors could delay payment of the Units or cause the Offeror not to amend the Declaration of Trust or send the notice as planned tomorrow. Should one or more of these uncertainties materialize, such actual results may vary from those expected. Given the uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements.

Contact Information

  • EdgeStone Capital Partners
    Gilbert S. Palter
    Chief Investment Officer and Managing Partner
    (416) 860-3789
    Stephenson's Rental Services Income Fund
    William D. Swisher
    (905) 507-3650 ext. 204