RDO Equipment, the company that operates rental equipment for farm equipment dealers, is set to receive a $3 million investment from a private equity firm that owns a stake in the company.
The investment is part of a $30 million round that the investment firm made last month in RDO’s core businesses.
RDO will receive $1.5 billion in additional financing to support the company’s expansion and its growth strategy, said Jason Dufour, chief operating officer of RDO.
The investment, which is expected to close in the fourth quarter of 2019, is expected primarily to support RDO as it seeks to further develop and expand its core businesses, which include equipment rental, farm equipment and ranch and homesteading equipment, said Dufur.
“We believe this is the right time to invest in RSO as we look forward to the future,” he said.
RDO will continue to be a strong financial player, Dufout said.
“We have been able to grow the company through the expansion of the core business over the last year, and the expansion will continue as we continue to grow.
In addition, we have invested in a number of new technology companies and partnerships that are designed to accelerate the growth of the business,” he added.
This is the second round of financing that RDO has received from a major equity firm, according to a source with knowledge of the matter.
About two years ago, a group of investors led by the venture capital firm Andreessen Horowitz, which led the initial round of funding, also invested in RDI, the New York-based equipment rental and equipment company, which operated in a business similar to RDO, according an RDI spokesman.
Last year, Andreessen and RDI invested $1 million each in RDZ, another rental equipment company.
