Deal Business Case · High Plains Power & Pump

Advance memo · Decision to pursue gate 1Prepared for the Board / Deal Committee · 3 June 2026 · Confidential

D pipelineRecommend: pre-empt now

Deal Business Case: High Plains Power & Pump

Advance memo · decision to pursue gate 1 · Temporary power and climate and Pumps and dewatering · Amarillo, TX · Texas Panhandle and South-Central adjacency · 4 branches

Fleet OEC$38Moriginal equipment costestimated

EBITDA$10.8M33 percent marginestimated

Dollar utilization44 percentabove priority thresholdestimated

Implied EV$49–70M4.5x–6.5x EBITDAestimated

Pro-forma synergy+$3.3Mrun-rate, Year 2estimated

Fit score86composite, deterministic

Strategic fit scorecarddeterministic weights

Strategic and Territory Fit84 · w 25

Dealer territory map + branch geocode + category tags

Fleet Quality90 · w 25

Fleet schedule, RMS export, telematics, used-equipment signal

Cross-Sell Pull-Through86 · w 20

Dealer parts, service, new, and used customer book

Commercial and Financial Quality88 · w 20

Management accounts, QoE, AR aging, market map

Acquirability and Integration Readiness79 · w 10

Entity records, org chart, RMS audit, banker-process signal

Source: Five-pillar model with deterministic weights 25 / 25 / 20 / 20 / 10.

Value buildstandalone to pro-forma EBITDA, $M

Source: Standalone EBITDA, reviewer-estimated synergy lines, and target scorecard assumptions.

Strategic rationale

Territory whitespace. Texas Panhandle is open ground that complements the regional dealer footprint, with no branch overlap.

Anchors a cluster. Pairs with Delta Pump to form a Gulf and South-Central power-pump cluster with shared service pull-through.

Top cross-sell pull-through. Generators pull strong Cat engine and uptime service revenue into the dealer's parts and service book.

Best-in-set economics. 33 percent margin, 44 percent dollar utilization, 31-month fleet age, counter-cyclical demand.

Clean pre-emption window. Owner is exploring options with no advisor engaged; a direct approach now avoids a future banked process.

Source: Adopted target findings and territory review notes.

The ask

Decision soughtApprove pursuit

Diligence budget$250K

Exclusivity target45 days

First contactDirect, principal-to-owner

Recommended IOI$55–62M

Implied multiple4.5x–6.5x standalone · approximately 3.4x–5.0x pro-forma

Risk assessmentlikelihood x impact

HighMediumLow

Source: Gate status, reviewer findings, and target-specific diligence risk tags.

Precedent comparables

Finning / Energyst Canada / UK and Ireland assetsPower/climate class match plus dealer platform rationale.

2021

Zeppelin Rental / Energyst Germany and Sweden assetsPower rental category-add analog with dealer service pull-through.

2021

Empire CAT / Southwest pump rental assetsPower and pump specialty plus United States dealer geography.

2021

Source: Cat dealer precedent library; values left null where not publicly disclosed.

100-day integration sketch

Day 1

Rebrand to the Cat Rental Store, systems access, retain key operators.

Day 30

Fleet onto telematics; review and triage vendor contracts for auto-renewals.

Day 60

Launch the cross-sell motion into dealer parts and service.

Day 100

Procurement harmonized; synergy tracking live in Day-1 Capture.

Source: Diligence-to-Day-1 milestone conversion model.

Findings and reviewer modelsource-linked

Adopted Specialty power and pump fleet is counter-cyclical and tightly aligned to dealer uptime service.Source: Segment analysis / fleet schedule estimate · Reviewer: Alicia Morgan · Owner: Dealer Corp Dev lead

Review Move before the owner hires an advisor; pre-emption window is relationship-led.Source: CRM relationship note · Reviewer: Alicia Morgan · Owner: Dealer principal

Review Point of Rental export makes Tier 2 utilization verification practical.Source: RMS signal · Reviewer: Operations diligence · Owner: Data integration lead

Pre-empt Top fit score 86 with owner exploring options; pre-emption window exists before advisor engagement.Source: CRM export / Strategic Fit Scoring · Reviewer: Alicia Morgan, VP Corp Dev · Owner: Dealer principal

Scores and figures are source-linked and deterministic; AI extracts and classifies inputs but sets no number, score, or weight. Fleet age, utilization, EV range, and synergy figures are estimated pending confirmatory diligence. Owner and personal information is excluded until active dialogue. Prepared by Corporate Development; reviewer adoption is required before this memo becomes a committee action.