Rentals Archives - Material Handling Wholesaler

Steady Hands in Shifting Sands: Maintaining Your Dealership’s Edge

Wed, 20 Aug 2025 05:00:57 +0000

In the September issue, we typically cover the latest developments in finance, rental, and leasing, providing input that dealers can use to modify their systems and procedures, ultimately leading to higher profits and increased cash flow. To accomplish meaningful results, you dig into industry data sources, talk to bankers, and put together comparative data year-to-year, explanations of why results shifted, and if you are lucky, compile estimates about the future 12 months at a minimum. This year, however, it appears that every avenue regarding equipment, interest rates, unit costs, customer requirements, rental activity, technology, new tax bills, and almost everything you look at is in a state of flux, meaning that any short-term analysis is probably going to be tough to work with because assumptions used could change at any time. Let’s start with a brief review of the industry, and then we’ll move on to the more significant changes you will need to address. If you recall, my previous series of articles focused on performance gaps and potential changes a dealer may encounter, which, if left unaddressed, would reduce the value of their investment. However, as I prepared this article, I realized that the five-year timeframe for AI and technology we have been hearing about will soon be upon us, requiring a decision to be made. Short-term decisions require a conservative approach to business planning. Dealers may also want to consider bringing in outsiders to help contemplate their personal technological literacy and access to expertise. This same method should be applied to risk management and prioritizing technology investments. Obtaining input from peer groups and OEMs is also essential. The most significant change will be in the metrics used to compare your statements with those of the standard industry results. For many of you, current metrics will no longer be comparable against your “new “numbers. This was one of the reasons I covered Free Cash Flow in a recent column: to determine how much free cash you have available for growth and technology. This conservative approach will impact both dealers and customers. Consequently, purchases of equipment will be kept to a minimum, with units in use receiving more attention from customers. Interest rates will lead customers to avoid higher-priced units, instead opting for rental or refurbished units that are available for purchase. Taking a conservative approach to the balance sheet is also essential. Clean up the AR, review the parts inventory, and eliminate slow-moving items. The same applies to used units with low time utilization. New unit purchases should be kept to a minimum until we get a better understanding of the market. You may also need capital for new types of inventory. Continue this review with your rental fleets to keep them available when needed. Also consider what units would be refurbished for sale. Squeeze as much capital out of the balance sheet that you can. The income statement line items should also be reviewed to see what can be eliminated and when. After completing these reviews and adjusting, you will have a much better story to take to the bank in support of additional capital needs Now let’s get to the potential change that will change the way you do business and, as a result, change the metrics from what they were to what they are after making both product and technological changes. What is going to change? AI development Technology ROBOTS Believe it or not, you will be in the ROBOT business because manufacturing and warehouse customers are going to demand it. Because China has built the most automated manufacturing empire in human history. Producing products faster and cheaper than anyone thought possible. China installed 276,000 industrial robots in 2023- more than half of all robots deployed worldwide that year. In 2021, more industrial robots were produced than ever before; China also produces 50% of the industrial robots it installs. And now they are starting to build robots themselves. And once they perfect this cycle of robots building better robots, US companies become permanent customers of Chinese factories. US companies are demanding a national robotics strategy. Every single factory or warehouse being built will be more automated than anything the US has ever built. Let’s face it, labor costs make traditional manufacturing uncompetitive. To beat China at this game, we need to out-automate them. Steal the robot jobs from China and use our robots to produce goods and services in the US. What is great about this is that your services and some products are what these manufacturers and distribution companies need to transition to full automation using robots. You sell, rent, maintain, and assist with the construction or rehabilitation process to modify an existing facility. Material Handling dealers should take steps to access robots, technology, and AI expertise to make it available to their customers. At the same time, they should have an arrangement with service providers to refer new customers they encounter. Now you understand, based on the “state of flux” comment I made earlier, as well as my earlier comment about the performance gap. Most dealers will be entering a new business with fewer personnel, lower prices, and fewer inventory units because of the AI/Technology opportunity. I also want to mention that Steve Pierson, CPA, and dealer tax expert, is available if you have questions about the new tax bill. Jim Margner, CPA, is the state and local tax expert who may be impacted by the new tax bill. If enough people are interested, we can set up a podcast to discuss the tax bill in more detail. Please let Dean know if you are interested. His email is dmillius@MHwmag.com. BDO sent me their summary of the tax bill, which I sent to Dean. Let him know if you need a copy. Last comment. Where do you fit into this new business environment? Where does your product fit in going forward? I suspect that there will be a few M&A deals available for dealers who are not willing to make the switch to this new

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1000th scissor lift to Malaysia’s fastest growing rental business

Thu, 26 Jun 2025 14:07:35 +0000

Noblelift’s Malaysia-based customer Ban Ngai Rent (BNR) will this month take delivery of its 1000th Noblelift scissor lift. This milestone has been reached in just 12 months, as BNR, a sister company of Kuala Lumpur-based Ban Ngai Engineering, was launched in March 2024 and took delivery of its first Noblelift scissor in June 2024. Since launching last year, the company has already expanded its fleet to 2,200 MEWPs and has ambitious plans to further increase that number rapidly at its locations across Southeast Asia. The company already has operations in Malaysia, the Philippines, Thailand, and Vietnam. BNR is actively exploring opportunities to expand its footprint into Singapore and Indonesia, with plans to establish a presence in both markets within the year “Our ambition is for BNR to be one of the top 3 regional providers of powered access in South East Asia,” says Dato’ Ong Joe-U, owner and Managing Director of parent group Ban Ngai. This foresees a steady increase in the fleet, and Chris Chin, BNR’s Sales Director SEA Region, is clear that Noblelift’s Access Division “will play an important part in this growth, we already have every model that Noblelift produces in our fleet”. BNR is actively pursuing market leadership by enhancing customer value through investments in parts and fleet management systems, telemetry data solutions, and delivering a ‘Wow’ customer experience “We are proud to partner with BNR as our South East Asia regional distributor,” says Noblelift Sales Director Amy Liang, adding that “BNR has our full range of scissor lifts, from 6m to 16m working height. The dynamic and rapid expansion of BNR is truly impressive”. “BNR is one of the rising stars in the access rental sector and will soon take delivery of some of Noblelift’s first electric booms. We truly value the trust that BNR places in our product and our after-sales service and support,” said Noblelift Access Division CEO Tim Whiteman.

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Think before you buy: The hidden cost of tariffs

Tue, 20 May 2025 05:00:33 +0000

I talked with Jim Margner (my state and local tax expert), who prepared notes for the Illinois Equipment Dealers Association presentation. I attended one of Jim’s prior sessions for this group, and he did a very nice job related to a highly complex topic. Illinois changed the rental equipment use tax collected when rental equipment is purchased to one based on rental billings starting January 1, 2025. The tax is not only based on rental billing but also on rental rates for the city where the equipment is being used. In other words, rental coordinators must have access to a rental rate list by city or town to estimate or prepare a billing invoice. As we discussed the potential problems associated with a rental tax using various rates, I started thinking how tariffs could complicate matters even more. Since rental rates are related to the cost of equipment, one must assume a unit that generates a tariff will have a different rental rate than a similar unit without a tariff. On the other hand, it could be tough to explain to a customer why one unit’s rate is 50-100% higher than that of a similar unit. So, based on this discussion with Jim, I decided to prepare a discussion paper this month to help you understand how tariffs will impact your financial statements and cash flow. After just playing around with this topic for 30 minutes or so, I came up with about 20 questions and a transaction tree to demonstrate options dealers must account for regarding tariffs. And from what I can tell, it will be very easy to mess up your financial and cash flow if tariff purchases are material. ACCOUNTING FOR TARIFF ON EQUIPMENT PURCHASES When a U.S. company purchases equipment from a Chinese vendor with a 50% tariff, the tariff impacts the overall cost of the equipment. The tariff is included in the equipment’s purchase price and capitalized on the Balance Sheet for accounting purposes. This increased capital cost is then depreciated using your standard book depreciation rate. The immediate cash outflow includes the purchase price plus the tariff, representing a significant financial commitment compared to a pre-tariff transaction. IMPACT ON EQUIPMENT RENTAL TRANSACTIONS For equipment rental transactions, the 50% tariff increases the cost basis of the rental equipment, affecting rental pricing. Higher acquisition costs necessitate higher rental rates to maintain profitability on the “tariff” units. Dollar utilization is typically profitable in the 35-40% range. 35% of $100,000 is quite a bit different from a similar unit costing $150,000. And the issues do not stop there. What about financing that $150,000 unit? What would the OLV (Orderly Liquidation Value) be on such a unit? But no matter how you slice it, a dealer must recover cost plus profit or risk damaging financial performance metrics. Do not forget that the interest cost of financing tariff units will be 50% higher than financing a non-tariff unit. Also, consider any cost increases related to parts purchases with a tariff tagged on to them. Another issue that blew me away was the pricing for rent-to-sell units and the potential higher parts costs incurred to maintain the unit before any purchase occurs. Good luck explaining this type of deal. CASH FLOW Additional tariff cost before the unit can be released to the buyer. Additional maintenance costs if parts are subject to tariffs. Higher interest cost for both inventory and rental units. Higher potential sales proceeds from both new and used rental units. Lower department margins if the cost of tariffs is not covered by sales prices that ensure profitability. MY THOUGHTS Avoid tariff purchases. Buy used units to support the rental fleet. Avoid RTS transactions using tariff units. Find ways to recover the tariff tax to avoid a cash crunch. Refurbished customer units instead of selling new tariff units to them. Watch the time between when the tariff is paid and subsequent cash receipts from sales. Adjust budgets and cash flow models as tariff units and transactions increase. Business Owner and department heads: GET A HANDLE ON THIS ASAP OR OUTSOURCE AS NECESSARY. The tariffs will eat into your equity position if you take a wrong turn. About the Columnist: Garry Bartecki is a CPA and MBA with GB Financial Services LLC, and a Wholesaler columnist since August 1993. E-mail editorial@mhwmag.com to contact Garry.

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Herc Holdings and H&E Equipment Services enter into definitive merger agreement

Thu, 20 Feb 2025 19:28:46 +0000

Acquisition Scales Herc’s Premier Platform and Accelerates Strategy for Industry Leading Growth and Superior Value Creation Transaction Terms Same as Proposal Previously Announced on February 18, 2025 H&E Terminates Agreement with United Rentals Herc Holdings Inc., one of North America’s leading equipment rental suppliers, and H&E Equipment Services, Inc. d/b/a H&E Rentals (“H&E”)has announced that H&E has terminated its prior merger agreement with United Rentals, Inc. and that Herc and H&E have entered into a definitive merger agreement under which Herc will acquire H&E. As previously announced on February 18, 2025, under the terms of the Herc and H&E agreement, H&E shareholders will receive $78.75 in cash and 0.1287 shares of Herc common stock for each share they own, with a total value of $104.89 per share based on Herc’s 10-day VWAP as of market close February 14, 2025. Following the close of the transaction, H&E’s shareholders will own approximately 14.1% of the combined company. “The acquisition of H&E is a unique opportunity to accelerate Herc’s proven strategy for industry-leading growth and delivering superior shareholder value,” said Larry Silber, Herc’s president and chief executive officer. “We have great respect for the H&E team and the high-quality platform they built. We look forward to welcoming H&E’s talented employees to Herc and working together to realize the substantial benefits that this transaction will create for the shareholders, employees, and customers of both companies.” John M. Engquist, executive chairman of H&E, added, “This is an outstanding transaction for H&E shareholders, providing both immediate, premium value and the opportunity to participate in the substantial upside value that will be created through this combination. With Herc, we have found a partner who shares our dedication to a higher standard of work.” Strategic and Financial Benefits Increased scale with complementary footprint and fleet mix: The transaction strengthens Herc’s position as North America’s 3rd largest rental company. The combined company will have a leading presence in 11 of the top 20 rental regions and increased urban density in 7 of the top 10 rental regions. In addition, it will have a larger, younger fleet, offering a variety of specialty equipment solutions and a broad range of general rental products. Approximately $300 million of annual EBITDA synergies are expected to be achieved by the end of year three following the close of the transaction, including approximately $125 million of cost synergies and approximately $175 million EBITDA impact from revenue synergies. Highly accretive: The transaction is expected to be high single-digit accretive to Herc’s cash earnings per share in 2026, ramping to greater than 20% as synergies are fully realized. In addition, it is expected to generate ROIC in excess of Herc’s cost of capital within three years of closing. Attractive financial profile: The combination creates a company with revenue and EBITDA of approximately $5.2 billion and $2.5 billion, respectively, with an expectation for continued revenue growth in excess of the market and improved adjusted EBITDA margins. Financial strength and flexibility with net leverage of 3.8x at close, prior to synergy realization, and projected to be below 3.0x and in Herc’s targeted range within 24 months of closing. Herc’s dividend will be maintained. Valuation multiple re-rating warranted for combined company that is more consistent with comparable company valuation multiples in the sector given the powerful growth platform, increased liquidity, and greater investor interest that comes with a scaled company. Transaction Details Herc intends to commence a tender offer to acquire all of the outstanding shares of H&E common stock for $78.75 per share in cash and 0.1287 shares of Herc common stock. Following completion of the tender offer, Herc will acquire all remaining shares not tendered in the offer through a second-step merger at the same price as in the tender offer. The transaction is expected to close mid-year 2025, subject to the majority of H&E’s shares being tendered into the offer, the receipt of customary regulatory approvals, and closing conditions. Herc has obtained committed financing for the cash portion of the transaction. In accordance with the terms of H&E’s prior agreement with United Rentals, Herc, on behalf of H&E, has paid a termination fee of $63,523,892 to United Rentals.

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Sunstate Equipment announces CEO transition

Thu, 30 Jan 2025 17:29:51 +0000

Sunstate Equipment’s Board of Directors has announced the appointment of Norty Turner as president & CEO beginning February 10, 2025. Turner succeeds Chris Watts, who will retire as president & CEO eﬀective March 28, 2025. “Chris is an inspiring, values-driven leader with an extraordinary passion for our people and commitment to our company,” said Marcel Langlois, senior Board Member. “On behalf of the Board, I would like to thank Chris for his invaluable contributions and the strong foundation for growth he helped to create during his time as CEO. We are now well-positioned to raise the bar on our aspirations for Sunstate’s next chapter. I’m delighted that Norty will lead that next phase in the company’s growth given his deep understanding of our industry and visionary leadership.” Turner brings extensive expertise to Sunstate Equipment, with three decades of experience in the equipment rental industry. In 1995, he began his career as a sales coordinator at Hertz Equipment Rental. He advanced through the ranks to hold senior positions, including Vice President & General Manager of HERC EMEA, and concurrently as President of Hertz Equipment France. In 2012, Turner became CEO of RIWAL, a Netherlands-based equipment rental company, where he successfully led the organization for more than six years. Upon returning to the U.S., he joined United Rentals as Senior Vice President of Services and Advanced Solutions, a role he held until 2022. Turner’s deep industry knowledge and proven leadership across diverse markets position him to guide Sunstate Equipment into its next phase of strategic growth. “I am honored to join Sunstate Equipment, grateful to the Board of Directors, and excited for the opportunity to contribute to its continued success,” said Turner. “Sunstate’s dedication to exceptional customer service, innovative solutions, and a people-ﬁrst culture truly sets it apart in the industry. My focus will be on building upon the strong foundation that Chris and the leadership team have established. Working alongside our talented teams to drive growth, innovation, and customer-focused business excellence, together we will not only uphold Sunstate’s legacy, but also shape a future defined by bold ideas, lasting partnerships, and a shared commitment to exceptional achievements.” Chris Watts will oﬃcially step down at the end of March after nearly 30 years of dedicated service. As the son of founder Mike Watts, Chris has been instrumental in transforming Sunstate from a regional rental company into a nationally recognized leader. “Leading this dedicated and principled team has been the honor of a lifetime,” said Chris Watts. “The success we’ve achieved is a testament to the hard work, ambition, and unwavering commitment of the 2,500 individuals who make up the Sunstate family. I am confident that under Norty Turner’s leadership, Sunstate will continue to thrive.”

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H&E opens new branch in Pensacola Florida

Tue, 07 Jan 2025 03:19:40 +0000

Effective January 6, 2025, H&E Rentals (H&E) announced the opening of its Pensacola branch, the company’s 15th facility in the state of Florida and its first of several new locations slated to open across the country this year. H&E operates in 31 states and opened 16 branches in 2024. The facility is located at 3381 Bill Metzger Lane, Pensacola, FL 32514-7070; phone 448 400-3100. It includes a fully fenced yard area, offices, and a repair shop and carries a variety of construction and general industrial equipment. “The location of our new Pensacola branch allows us to better serve the far west Florida Panhandle and into southern Alabama. Renting equipment is now even more convenient for customers from Gulf Shores to Milton and along I-65 to Evergreen. Our position between our existing Mobile and Fort Walton Beach facilities gives us the advantage of working together to source the equipment customers need from an expanded local fleet,” says Branch Manager Aaron Lee. “We’re just off Highway 90 near I-10 and Highway 29, so we can quickly get equipment to job sites anywhere within our territory.” The Pensacola branch specializes in the rental of aerial lifts, earthmoving equipment, forklifts, telehandlers, compaction equipment, generators, light towers, compressors, and more. The fleet represents the following manufacturers: Allmand, Atlas Copco, Blue Diamond Attachments, BOMAG, Case, Club Car, Connect Work Tools, Cushman, Gehl, Generac Mobile, Genie, Hamm, Haulotte, Husqvarna, JCB, JLG, John Deere, Kobelco, Kubota, LayMor, Ledwell, Lincoln Electric, Link-Belt Excavators, Manitou, MEC, Miller, Multiquip, Okada, Polaris, Sany, Skyjack, SkyTrak, Sullair, Sullivan-Palatek, Tag, Towmaster, UniCarriers, Vacuworx, Virnig, Wacker Neuson, Yanmar, and others.

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Rental Industry Don O’Neal passes

Tue, 07 Jan 2025 03:14:57 +0000

Rental industry veteran Don O’Neal died on January 3 in Grapevine, Texas, at 76. Born in Fort Worth, Texas, on April 25, 1947, he joined his father’s business, A-1 Rental, in the Dallas/Fort Worth area after graduating from the University of Texas. Together, they grew A-1 into a powerhouse in the DFW market. The O’Neals sold A-1 to Fort Lauderdale, Fla.-based NationsRent in the late 1990s. O’Neal became president of NationsRent. After several years, O’Neal left and moved back to Colleyville, Texas, in the DFW area. After a few years, O’Neal opened RentalOne in the DFW Metroplex, along with his son Mike and other family members. The O’Neals recently sold RentalOne to Texas First Rentals. O’Neal is survived by his wife years, Elizabeth O’Neal of Colleyville, Texas; his son, Mike O’Neal and wife, Mia; his daughter, Tiffany Alvarez and husband, Chad; grandchildren, Austin Alvarez and wife, Abbey; Wes Alvarez and wife Taylor; Caroline O’Neal, Hooper O’Neal, and Jaxon O’Neal; great-grandchildren Weston Alvarez and Cal Alvarez. A Celebration of Life Service will be held at Cross City Church in Euless, Texas, on Saturday, Jan. 11, at 2:00 p.m. The family requests that in lieu of flowers, donations may be made to Cross City Church, in Euless, or the MD Anderson Cancer Center. The family adds that blood donations extended O’Neal’s life and suggests people consider becoming a blood donor at Carter BloodCare.

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2024 Rental Hall of Fame inductees announced

Mon, 02 Dec 2024 19:00:51 +0000

Each year, the American Rental Association (ARA) honors individuals for outstanding service to the association and the rental industry. This year’s inductees into the Rental Hall of Fame, the industry’s highest honor, will be recognized at The ARA Show™ 2025 in Las Vegas. ARA created the Rental Hall of Fame in 2000 to honor those individuals who have changed the trajectory of the equipment and event rental industry. Each year, nominations are accepted to recognize outstanding industry leaders who have made a substantial and lasting impact on the industry’s success and growth at the national or international level. This year’s three inductees include Bick Jones, Peter Lancken AM, and David Wilcox II. Here is more information on the newest inductees: Bick Jones, Total Tent Solutions, Houston Jones entered the event rental industry in 1986 after building a successful career in banking. As he and his partner at the time, Emily Maduro were looking for a small business to purchase, their broker showed them an event rental business. After researching the industry, they discovered ARA and its resources, detailing the beginnings of event rentals. Their newfound knowledge made the pair purchase Cannonball Party Rental in Dallas in February 1986. Jones’s financial acumen and knowledge of growth strategies — together with the experience of Cannonball’s staff — made the venture a success. Jones went on to serve in leadership roles with Ducky-Bob’s Party and Tent Rental in Carrollton, Texas; California-based Classic Party Rentals; Classic Tents in Torrance, Calif.; PEAK Event Services in Woburn, Mass.; Marquee Events in Dallas; and CommuniLux in Dallas, a subsidiary of InProduction, Chicago. The experience Jones accumulated through his roles as general manager, chief operating officer, and CEO at these organizations made him a highly sought-after expert in the event rental industry. Testimonials from many industry colleagues reveal that Jones was generous in sharing his experience in business management and his ideas for innovative rental showroom and warehousing concepts. During his rental career, Jones served on numerous ARA committees, task forces, and panels, including the ARA Investment Committee, the ARA Information Committee, and the ARA Show™ Task Force. He received the ARA Rental E-Web Award for party in 2004 and has been a speaker and panelist at The ARA Show™ numerous times. Following his official retirement in May 2022, Jones has lent his experience on a part-time basis to his son, with whom he bought a tenting business, Total Tent Solutions, in Houston in 2020. Peter Lancken AM, Kennards Hire, Seven Hills, New South Wales (NSW), Australia Lancken’s rental career began in 1978 with GKN, an Australian scaffolding company. He later moved to the U.S. to set up and grow a rental business for GKN in southern California. Over a four-year period under his management, Lancken created a $50 million business that grew to a network of 38 branches. When GKN divested its business in Australia in 1994, Lancken negotiated a deal with Andy Kennard to buy the balance of GKN. Soon after, Lancken took on the role of managing director of the Kennards Group, which was still a small business at the time. When Lancken joined Kennards in 1995, no other rental company in Australia had national representation. Lancken pursued his vision to create a national footprint with the Kennards Hire brand and develop a network of branches around the country. Under his leadership, Kennards Hire has won the Australian “Hire Company of the Year” recognition twice, and the company’s network has grown by more than 70 branches. Lancken has served as president of the NSW Hire Association and was a founding director of Australia’s Hire and Rental Industry Association (HRIA). He became involved in ARA in the 1990s and has strongly supported the ARA Foundation. In 2003, he was a founding member of the Global Rental Alliance, which was formed to raise the profile of equipment rental worldwide while increasing the membership value of the respective associations. The Global Rental Alliance included Brazil, New Zealand, Belgium, the U.S., Canada, Australia, and the U.K. Lancken was also instrumental in creating an international exchange program for young people in the industry. Kennards hired and hosted the first Global Rental Alliance exchange program participant, and the program has since enabled many young people to travel abroad to further their rental education. In recognition of his service, Lancken received the ARA Meritorious Service Award in 2007 and the ARA Distinguished Service Award in 2014—the first person outside of the U.S. to receive the distinction. In 2020, he received the Member of the Order of Australia (AM) for his significant service to the equipment hire and rental industry. After stepping down as CEO of Kennards Hire in 2009, Lancken joined the Kennards Hire board and held the role of Chairman from 2012-2017. He remains a non-executive director of the Kennards Group. David Wilcox II, General Rental Center, Frankfort, Ky. Wilcox became involved in the equipment rental industry in 1977 when he started General Rental Center with his father, David Wilcox Sr. He was a charter member of the ARA of Kentucky who attended the chapter’s first meeting, served on its board of directors and remains involved through the present day. Over the years, Wilcox has recognized the need for the equipment and event rental industry to have input from governmental policy and legislation. He spearheaded regular trips of Kentucky members to the U.S. Capitol to advocate for pro-rental policies and was a longtime participant in ARA’s National Legislative Caucus in Washington, D.C. Wilcox served as ARA Region Five director from 1996-1999 and served on several ARA committees and task forces at the national level. He was elected ARA vice president in 1999, moved up to serve as the association’s 41st president in 2002, and chaired the board in 2003. Some of the achievements that highlighted Wilcox’s term on the ARA national board of directors include the hiring of Christine Wehrman, who served as ARA CEO from 2000-2016, the formation of ARA Region Nine (encompassing California, Hawaii and Nevada), the streamlining

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H&E Rentals reports third quarter 2024 results with revenue off by 4%

Tue, 29 Oct 2024 15:11:28 +0000

Today, H&E Equipment Services, Inc. reported financial results for the third quarter, which ended on September 30, 2024. The report includes the Company’s branch expansion achievements, with the addition of eight new locations in the third quarter, expanding the Company’s branch network to 157 locations across 32 states. THIRD QUARTER 2024 SUMMARY WITH A COMPARISON TO THIRD QUARTER 2023 Revenues declined 4.0% to $384.9 million compared to $400.7 million. Net income was $31.1 million compared to $48.9 million. The effective income tax rate was 28.3% compared to 26.1%. Adjusted EBITDA totaled $175.3 million, a decrease of 8.4% compared to $191.4 million. Adjusted EBITDA margins were 45.6% of revenues compared to 47.8%. Total equipment rental revenues were $326.2 million, an increase of $10.4 million, or 3.3%, compared to $315.8 million. Rental revenues were $288.1 million, an increase of $7.8 million, or 2.8%, compared to $280.3 million. Rental equipment sales decreased 47.3% to $27.8 million compared to $52.7 million. Gross margin declined to 44.5% compared to 47.0%. Total equipment rental gross margins were 45.3% compared to 47.4%, and rental gross margins were 51.2% compared to 53.3%. Average time utilization (based on original equipment cost) was 67.6% compared to 70.0%. Based on original equipment cost, the Company’s rental fleet closed the third quarter of 2024 at slightly below $3.0 billion, an increase of $220.1 million, or 8.1%. Average rental rates declined 0.1% compared to the third quarter of 2023 and fell 0.6% compared to the second quarter of 2024. Dollar utilization was 39.4% compared to 41.5% in the third quarter of 2023 and 38.6% in the second quarter of 2024. The average rental fleet age on September 30, 2024, was 40.8 months, compared to an industry average of 47.9 months. Paid regular quarterly cash dividend of $0.275 per share of common stock. “Industry fundamentals in the third quarter continued to trail year-ago measures,” said Brad Barber, chief executive officer of H&E Rentals. “Physical fleet utilization averaged 67.6%, or 240 basis points below the third quarter of 2023, evidence of the lower customer demand and a lingering modest oversupply of equipment. On a sequential quarterly basis, utilization improved 120 basis points. In addition, rental rates declined 0.1% compared to the prior-year quarter and were down 0.6% from the second quarter of 2024. Despite weakness in these key metrics, rental revenues grew 2.8% compared to the year-ago quarter due largely to the steady expansion of our branch count since the close of the third quarter of 2023. Finally, gross fleet expenditures in the quarter were $131.3 million, resulting in gross expenditures through the first nine months of 2024 of $327.8 million. We concluded the third quarter with a fleet original equipment cost of slightly below $3.0 billion.” Mr. Barber acknowledged the Company’s impressive expansion achievements, noting, “A record number of eight branches were added in the third quarter, while a ninth branch was opened in the month of October. The strong outcome reflected the outstanding execution of our accelerated new location program, which has achieved a record 16 additional locations in 2024, exceeding our stated expansion expectation. Through September 30, 2024, our U.S. geographic coverage improved to 157 locations across 32 states. When accounting for both new locations and branches added through acquisition, our branch count is up more than 14% in 2024 and approximately 54% since the close of 2021. Both measures are dominant accomplishments in our industry.” With the final quarter of 2024 underway, Mr. Barber provided updated expectations for the rental equipment industry, stating, “Construction spending in the U.S. continues to demonstrate the slowing rate of growth observed over the first half of 2024. We believe a trend of moderating activity will persist through the remainder of the year, with physical fleet utilization and rental rates below year-ago measures. Beyond the fourth quarter, the developing outlook for our industry is more encouraging into 2025. The Dodge Momentum Index (DMI), a leading indicator of construction spending, has exhibited gains for five of the last six months, while construction employment remains on a steady upward trajectory. Also, a cycle of easing interest rates is expected to have positive implications for local construction activity as projects are reevaluated under more favorable lending conditions. Finally, the strong expansion of mega-projects remains a significant growth driver for our industry, both today and in the future. Our branch expansion has led to greater and more diverse exposure to mega projects, including a growing presence on data centers, solar and wind farms, and LNG export facilities.” FINANCIAL DISCUSSION FOR THIRD QUARTER 2024 Revenue Total revenues were $384.9 million in the third quarter, a decline of 4.0% compared to $400.7 million in the third quarter of 2023. Total equipment rental revenues of $326.2 million improved 3.3% compared to $315.8 million in the third quarter of 2023. Rental revenues of $288.1 million increased 2.8% compared to $280.3 million in the third quarter of 2023. Rental equipment sales totaled $27.8 million, a decrease of 47.3% compared to $52.7 million in the third quarter of 2023. New equipment sales of $14.1 million increased 11.2% compared to $12.6 million in the same quarter of 2023. Gross Profit Gross profit totaled $171.5 million in the third quarter of 2024, a decrease of 9.0% compared to $188.4 million in the third quarter of 2023. Gross margin declined to 44.5% for the third quarter of 2024 compared to 47.0% for the same quarter in 2023. On a segment basis, the gross margin on total equipment rentals was 45.3% in the third quarter of 2024 compared to 47.4% in the third quarter of 2023. Rental margins were 51.2% compared to 53.3% over the same comparison period. Rental rates in the third quarter of 2024 declined 0.1% compared to the third quarter of 2023. Time utilization (based on original equipment cost) was 67.6% in the third quarter of 2024 compared to 70.0% in the third quarter of 2023. Gross margins on rental equipment sales improved to 60.2% in the third quarter of 2024 compared to 58.5% in the third quarter of 2023. Gross margins on new equipment sales were 19.8% in the third quarter of 2024 compared to

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Herc Holdings reports Nine Months 2024 results and updates 2024 Full Year Guidance

Tue, 22 Oct 2024 19:50:42 +0000

Record equipment rental revenue of $866 million, an increase of 13% Record total revenues of $965 million, an increase of 6% Rental pricing increased 2.3% year-over-year M&A and greenfield openings offset the impact of decelerating local-market revenue growth Net income increased 8% to $122 million, or $4.28 per diluted share Adjusted EBITDA of $446 million increased 9%; adjusted EBITDA margin of 46.2% Free cash flow of $218 million for the nine months ended September 30, 2024 Herc Holdings Inc. has reported financial results for the September 30, 2024 quarter. “In the third quarter, we significantly outpaced overall industry growth on both a total rental revenue basis and from an organic revenue perspective,” said Larry Silber, president and chief executive officer. “By capitalizing on our broad end-market coverage, diversified product and services offering, and expanding share in resilient urban markets, we continue to deliver strong volume and a solid price/mix performance. “We increased third quarter rental revenue by 13% to a new quarterly record, primarily reflecting the continued robust growth from mega projects and contributions from our increased branch network and recent acquisitions. This growth was achieved despite a tough year-over-year comparison and a challenging interest rate environment for local project starts,” said Silber. “As we manage the complexities of disparate levels of demand across geographies, end markets, and project types, our team is agile and remains focused on aligning costs and balancing fleet while continuing to support the growth of our business and deliver outstanding customer service.” 2024 Third Quarter Financial Results Total revenues increased 6% to $965 million compared to $908 million in the prior-year period. The year-over-year increase of $57 million was primarily related to an increase in equipment rental revenue of $101 million, reflecting positive pricing of 2.3% and increased volume of 10.7%. Sales of rental equipment decreased by $43 million during the period. Fleet rotation in the prior-year period was accelerated due to the easing of supply chain disruptions in certain categories of equipment. Dollar utilization increased to 42.2% in the third quarter compared to 42.1% in the prior-year period. Direct operating expenses were $334 million, or 38.6% of equipment rental revenue, compared to $288 million, or 37.6% in the prior-year period. The increase related primarily to the business’s growth, with personnel and facilities costs associated with greenfields and acquisitions. Rental equipment depreciation increased by 4% to $174 million due to a higher year-over-year average fleet size. Non-rental depreciation and amortization increased 14% to $33 million, primarily due to the amortization of acquisition intangible assets. Selling, general, and administrative expenses were $123 million, or 14.2% of equipment rental revenue, compared to $115 million, or 15.0%, in the prior-year period due to the continued focus on improving operating leverage while expanding revenues. Interest expense increased to $69 million compared with $60 million in the prior-year period due to increased borrowings primarily to fund acquisition growth and investment in rental equipment. Net income was $122 million compared to $113 million in the prior-year period. Adjusted net income increased 9% to $124 million, or $4.35 per diluted share, compared to $114 million, or $4.00 per diluted share, in the prior-year period. The effective tax rate was 24% compared to 23% in the prior-year period. Adjusted EBITDA increased 9% to $446 million compared to $410 million in the prior-year period, and adjusted EBITDA margin was 46.2% compared to 45.2% in the prior-year period. 2024 Nine Months Financial Results Total revenues increased 7% to $2,617 million compared to $2,450 million in the prior-year period. The year-over-year increase of $167 million was primarily related to an increase in equipment rental revenue of $229 million, reflecting positive pricing of 3.5% and increased volume of 8.4%, partially offset by an unfavorable mix driven primarily by inflation. Sales of rental equipment decreased by $63 million during the period. Fleet rotation in the prior year period was accelerated due to the easing of supply chain disruptions in certain categories of equipment. Dollar utilization increased to 41.0% compared to 40.8% in the prior-year period. Direct operating expenses were $967 million, or 41.1% of equipment rental revenue, compared to $851 million, or 40.1% in the prior-year period. The increase is primarily related to the business’s growth and personnel and facilities costs associated with greenfields and acquisitions. Additionally, delivery expenses were higher due to internal equipment transfers to branches in higher-growth regions to drive fleet efficiency. Finally, insurance expenses increased, primarily related to increased self-insurance reserves due to claims development attributable to unsettled cases. Rental equipment depreciation increased by 4% to $499 million due to a higher year-over-year average fleet size. Non-rental depreciation and amortization increased by 11% to $92 million, primarily due to the amortization of acquisition intangible assets. Selling, general, and administrative expenses were $358 million, or 15.2% of equipment rental revenue, compared to $332 million, or 15.7%, in the prior year due to the continued focus on improving operating leverage while expanding revenues. Interest expense increased to $193 million compared with $162 million in the prior-year period due to increased borrowings primarily to fund acquisition growth and investment in rental equipment. Net income was $257 million compared to $256 million in the prior-year period. Adjusted net income increased 2% to $265 million, or $9.30 per diluted share, compared to $260 million, or $9.03 per diluted share, in the prior-year period. The effective tax rate was 23% compared to 21% in the prior-year period. Adjusted EBITDA increased 7% to $1,145 million compared to $1,070 million in the prior-year period, and adjusted EBITDA margin was 43.8% compared to 43.7% in the prior-year period. Rental Fleet Net rental equipment capital expenditures were as follows (in millions): Nine Months Ended September 30, 2024 2023 Rental equipment expenditures $ 753 $ 1,100 Proceeds from disposal of rental equipment (198 ) (231 ) Net rental equipment capital expenditures $ 555 $ 869 As of September 30, 2024, the Company’s total fleet was approximately $7.1 billion at OEC. The average fleet at OEC in the third quarter increased by 12% compared to the prior-year period. The average

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Mid-Week dates and return of Future of Equipment Rental Planned for The ARA Show 2025

Tue, 17 Sep 2024 22:22:04 +0000

The ARA Show will return to the Las Vegas Convention Center in 2025, featuring a mid-week schedule and the Future of Equipment Rental. Registration for The ARA Show 2025 opens Tuesday, September 24. Register early to benefit from incentive pricing through October 8 and advance pricing through January 26. The American Rental Association’s (ARA) annual trade show is a can’t miss event for those looking to discover what’s next in rental. The trade show has a few twists in store with a shift to a mid-week schedule in 2025 and the return of Future of Equipment Rental. The schedule kicks off with Future of Equipment Rental on Tuesday, January 28; a full day of education sessions planned for Wednesday, January 29; and a three-day trade show will take place from Thursday, January 30 to Saturday, February 1. “We are excited to introduce a change in schedule for The ARA Show 2025 that will better accommodate our members and prospective members as they plan for a successful year ahead,” says Christine Hammes, Vice President of Association Services and Events. “The ARA Show continues to raise the bar on expectations each year, providing an unmatched combination of education sessions, networking opportunities, and a trade show that showcases the latest and greatest products and services for rental businesses.” Future of Equipment Rental — a full-day education and networking workshop for those in equipment rental — will be held on January 28. After a successful debut in 2023, the workshop returns with speakers and sessions focused on new technology and emerging trends for any size rental business. Future of Equipment Rental takes place one day before the start of The ARA Show and requires a separate registration fee. The ARA Show 2025 officially kicks off with a full day of education on Wednesday, January 29. The mid-week date is a change from the traditional schedule, but we will continue to offer exceptional sessions focusing on various relevant topics for rental professionals at every level. David Pogue will deliver the Keynote Session on Thursday, January 30. A technology expert and speaker, Pogue is a New York Times bestselling author of “Pogue’s Basics,” a series of essential tips and shortcuts, as well as several books in the “For Dummies” series and the “Missing Manual” series of computer books. He has been at the forefront of new and emerging tech trends for decades and will leave Keynote Session attendees informed about the state of science and technology today and how it’s shaping our future. The trade show floor will open immediately following the Keynote Session for two and a half days of product introductions and the latest innovations. An outdoor exhibit area will be located in the Diamond Lot next to the Convention Center West Hall. It provides space for equipment demonstrations and will include special attractions, food trucks, and more. Other featured networking events held throughout The ARA Show 2025 include the ARA’s Industry Awards Lunch, Regional Receptions, Breakfast hosted by Women in Rental, ARA Young Professionals Cocktails & Contacts, and The ARA Show Opening Reception, which will take place on Thursday, January 30. Advanced registration and ticket requirements may apply to select networking events. For complete show details, including registration and pricing information, visit ARAshow.org.

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As the rental, financial and technology markets change, is your dealership?

Tue, 20 Aug 2024 05:00:38 +0000

Much is going on that impacts OEMs, Equipment Dealers, Financing Sources, and Customers. Inflation, supply chain disruptions, and geopolitical tension lead to cautious customer behavior, thus creating new levels of management manipulation to keep the ships upright. In addition to these significant disruptive sources, you add the risk associated with technology decisions, not only for your company but also for a high percentage of your customer base familiar with emerging technologies. Here are just a few concerns dealers have on their minds: Revenue per employee Tariffs Tax opportunities Overtime Regs On-shoring Near-shoring AI and IT for manufacturers AI and IT for warehouse and distribution centers Having products and services to fit the needs of manufacturers and distributors Finding other programs and methods to increase sales. Providing consulting services to customers. Emerging Technology Electrification Hydrogen cells Inventory changes and management. Supply chain disruption Collateral value of equipment Planning for rental income to represent a higher % of sales. Resale value uncertainty Bank and Financial source education Programs to find and keep personnel Cybersecurity threats Supply chain management Need for more dealer consolidation Quarterly cash flow requirements Cap-X for AI, IT, and customer consulting And I am sure you are also trying to hire to fill talent needs throughout your organization. And how about those equipment prices? Used values are falling, leaving you with the problem of having high-priced pandemic units now dropping in price and a collateral problem with the banks. And let us not forget the new elephant in the room….AI. Making an AI decision can be high risk if you do not know what you are doing, so MHW is premiering a new column next month to help with the process. And as far as your sales silo is concerned, you will be adding new accounts to track new types of equipment, including automated guided vehicles, and different types of fuel sources being offered, such as electric trucks using lithium-ion batteries as well as hydrogen fuel cells. We can all agree that customers will look to YOU to provide insight into what type of unit best fits their needs. I have heard hydrogen is growing its market share because it is cheaper and avoids the “green costs” associated with mining and disposing of lithium. All these issues have produced some interesting discussions with bankers. CEO and shareholder anxiety must be the name of the game regarding the balance of 2024. As I have said in the past, if you are not ready or able to roll with the punches and make the investments necessary to stay in the game, it may be time to investigate transitioning out of the industry. Consolidation is taking place in all types of markets, with equipment dealers and rental companies appearing in every business publication I read. One final option before pulling the plug is to find and hire a manager prepared to deal with the issues at hand. On the FINANCING side of the business, banks and finance companies are having their own problems because many customers are experiencing cash flow challenges, resulting in payment delays to either the bank or dealer. Credit risks are also increasing because of economic uncertainty affecting dealers and customers. Having numerous financing sources available is a must for today’s markets. Financing sources are asked to finance unfamiliar new types of equipment for both the dealer and customers. Lenders must contend with the value of what is currently on their balance sheet instead of financing new equipment types with which they have zero history of working. Consequently, dealers should prepare examples of the expected values of the equipment over at least a five-year period. Dealers should prepare an annual equipment appraisal covering used equipment inventory and rental units. I also suggest you track the sales of your used equipment and compare the sales price to what appears in the valuation report. If you can show the bank that you are selling used equipment for more than what appears in the valuation report, the bank will rely more on the report when considering your credit requests. Remember that many buyers are waiting for interest rates to be reduced before purchasing new or used equipment. If so, sales will be deferred, reducing the cash flow to finance the business. I see that rental activity is increasing rather than purchasing units, eventually impacting dealer cash flow and borrowing capacity. Dealers will have little say in how all this works out. Changes in emerging technology and advancements in warehouse automation and shop floors will dictate what lift truck dealers must provide. The trick will be eliminating the old, bringing in the new, and becoming more efficient using the latest technology and AI (if it works for you). Cash flow schedules incorporating these changes should be adjusted and updated quarterly to stay ahead of the game—notice I said cash flow schedules, not budgeting worksheets. In the end, the revenue silos will produce less profits and cash flow, and dealers need to be prepared to deal with this situation. On the other hand, you may be selling more technical equipment and systems that make up for reductions in other sale categories. Change is coming faster than you think. Be prepared to produce a company ready to provide products and services and consulting to the ever-changing manufacturing and distribution world you will be living in. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC and a Wholesaler columnist since August 1993. E-mail editorial@mhwmag.com to contact Garry.

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ARA’s US & Canada third-quarter economic forecast released

Thu, 15 Aug 2024 21:39:11 +0000

In its updated forecast, the American Rental Association (ARA) indicates that the United States equipment rental industry’s 2024 growth projection indicates softening. The most current projections indicate an 8.9% revenue increase in 2024, totaling $78.7 billion in construction and general tool rental revenue, and a 5.3% growth in 2025. This is a decrease from last quarter’s projected 9.7% increase, totaling $79.2 billion. Broken down by segment, construction and industrial rental revenue (CIE) is projected to be $62.3 billion, and general tool rental revenue is expected to total $16.4 billion. “While the rental industry and opportunities continue to expand, we are experiencing softer growth,” states Tom Doyle, ARA vice president of program development. “The ARA quarterly survey results confirm this softening.” “The forecast for construction and industrial has not changed much since last quarter, perhaps a few tenths of basis points, but there has been more change to general tool,” says Scott Hazelton, managing director at S&P Global. “The market is still doing well but slowing. Next year’s GDP growth is lower than trend at 1.6% growth, the trend is around 2.1%. The overall view of rental is positive moving forward, but there is uncertainty out there.” Kurt Barney, president of Vandalia Rental, Vandalia, Ohio, adds, “Largely what we’re seeing is softening growth as well. We’re seeing pricing elasticity. It’s no longer, ‘Do you have it?’ We’re back to doing business like 2019 when we have to really communicate the value proposition of working with us.” Barney also says, “We’re balancing rate pressures, supply chain, and mix of the fleet in a softening environment, especially on the earthmoving side. As interest rates begin to decline, I think it will take some of the projects off the sidelines. The quarter and half points have a huge impact on those projects. The rental model and proposition has never been stronger. It’s a good place to be.” The updated Canadian equipment rental revenue forecast shows a 6.6% growth, totaling $5.75 billion, compared to last quarter’s projection of 7.2% growth, totaling $5.79 billion. Broken down by segment, general tool and construction and industrial equipment (CIE) are expected to grow. Canadian general tool revenue this year is projected to be 6.8%, $1.08 billion, and Canadian CIE revenue in 2024 is projected to be $4.67 billion. Rob Wilson, chief operating officer of Stephenson’s Rental Services, Mississauga, Ontario, says, “What we’re seeing across our markets is pretty slow, but Stephenson’s is still growing. It’s a mixed bag. Residential activity represents 60% to 65% of those markets, and that activity is down.” Wilson is optimistic that the latter half of 2025 will be very strong. The 2025 projection for Canada’s combined rental revenue is $6.14 billion, a 6.7% year-over-year growth. Broken down by segment that equals $1.14 billion in general tool rental revenue and $5 billion in CIE rental revenue. “I wouldn’t characterize Canada’s economy as robust, but CIE is one of the strongest investments in particular,” says Hazelton. “We do expect the economy to get stronger as a whole by 2027.” What’s driving this forecast? S&P Global believes that interest rates will not come down until December, despite the chair of the Federal Reserve, Jerome Powell’s most recent testimony. Powell wants to see inflation stay under control before any moves are made. Hazelton also believes that when the cuts come, they will come slowly. “We [S&P Global] also see a downshift in GDP from 2.4% growth this year to 1.6% growth next year,” says Hazelton.

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H&E opens new branch in Cedar Rapids

Mon, 05 Aug 2024 17:33:43 +0000

Effective August 5, 2024, H&E Rentals (H&E) announces the opening of its Cedar Rapids branch, the company’s first general rental location in the state of Iowa. H&E now operates in 32 states, and it has opened 23 new branches across the country and acquired nine others since the second quarter of 2023. The facility is located at 1925 Blairs Ferry Road NE, Cedar Rapids, IA 52402-5811, phone 319-432-7100. It includes a fully fenced yard area, offices, and a repair shop and carries a variety of construction and general industrial equipment. “H&E’s expansion into Iowa adds another state to our Midwest operations and extends our reach farther north from our Columbia, Peoria, and St. Louis branches. Our territory covers the entire eastern half of Iowa, from the Illinois and Wisconsin border west to I-35. The newly renovated facility is just off I-380, and our proximity to Hwy 100 and other major roadways means we’re on our way to your job site quicker,” says Branch Manager Scott Pritchett. “We may be new to the Hawkeye State, but we’re certainly not new to the equipment rental business. H&E maintains one of the youngest fleets in the industry, and we look forward to establishing new relationships and showing customers how we can partner with them in their business.” The Cedar Rapids branch specializes in the rental of aerial lifts, earthmoving equipment, telescopic forklifts, compaction equipment, generators, light towers, compressors, and more and represents the following manufacturers: Allmand, Atlas Copco, Bomag, Case, Club Car, Cushman, Doosan, Gehl, Generac Mobile, Genie, Hamm, Hilti, Husqvarna, JCB, JLG, John Deere, Kobelco, Kubota, LayMor, Ledwell, Lincoln Electric, Link-Belt Excavators, MEC, Miller, Multiquip, Polaris, Sany, Skyjack, SkyTrak, Sullair, Sullivan-Palatek, Tag, Towmaster, Unicarriers, Wacker Neuson, Yanmar, and others.

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H&E opens new branch near Idaho Falls, SD

Mon, 15 Jul 2024 23:52:05 +0000

Effective July 15, 2024, H&E Rentals (H&E) announces the opening of its Idaho Falls branch, the third general rental equipment location in the state of Idaho. H&E has opened 22 new branches across the country and acquired nine others in just over a year, and it has operations in 31 states. The facility is located at 2727 East 14th North, Ammon, ID 83401-6232, phone 208-977-0900. It includes a fully fenced yard area, offices, and a repair shop and carries a variety of construction and general industrial equipment. “H&E has extended its coverage in Idaho and across the Wyoming state line to easily service projects that are a farther reach for our branches in Boise, Belgrade, Montana, and Ogden, Utah. Our Idaho Falls branch has filled in those gaps between our other H&E facilities in the region, and we can now work in tandem to take care of our customers across several states,” says Branch Manager Josh Criddle. “We’ve added greater fleet availability to the area, and the location of our new facility has quick access to I-15 and roadways that branch off in all directions, so we can get equipment moving to job sites without delay.” The Idaho Falls branch specializes in the rental of aerial lifts, earthmoving equipment, telescopic forklifts, compaction equipment, generators, light towers, compressors, and more and represents the following manufacturers: Allmand, Atlas Copco, Bomag, Case, Club Car, Cushman, Doosan, Gehl, Generac Mobile, Genie, Hamm, Hilti, Husqvarna, JCB, JLG, John Deere, Kobelco, Kubota, LayMor, Ledwell, Lincoln Electric, Link-Belt Excavators, MEC, Miller, Multiquip, Polaris, Sany, Skyjack, SkyTrak, Sullair, Sullivan-Palatek, Tag, Towmaster, Unicarriers, Wacker Neuson, Yanmar, and others.

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Herc Rentals acquires Durante Rentals

Mon, 01 Jul 2024 16:57:08 +0000

Herc Rentals, Bonita Springs, Fla., has acquired Durante Rentals, New Rochelle, N.Y. Durante Rentals has provided construction equipment rentals and sales to customers across the New York tri-state area since its establishment in 2009. In May 2023, Durante Rentals acquired the Iron Source brand, enabling the company to expand its reach into the mid-Atlantic market through Iron Source’s Delaware locations. In 2024, Durante Rentals operated six locations under the Durante Rentals brand across New York and New Jersey and four locations under the Iron Source brand in Delaware. Durante Rentals was founded by cousins Anthony Durante and John Durante in 2009. The Durante cousins grew up in the rental business as their respective parents had run a rental business since the 1970s, known as Durante Equipment, which was acquired by United Rentals in 2000. Anthony and John worked briefly for United Rentals before going their separate ways in different businesses, eventually reuniting to found Durante Rentals, starting in a trailer their fathers’ original company had used alongside a Bronx Expressway leading to the entrance to the Whitestone Bridge. John Durante left the company in 2019 and founded Durante Equipment in Hollywood, Fla. Herc’s acquisition of Durante Rentals comes on the heels of Durante Rentals being named one of Rental Management’s 2024 Market Movers in the category of fastest-growing independent equipment rental companies with more than $10 million in annual revenue.

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REIC acquires Bigfork Rentals

Thu, 27 Jun 2024 22:11:37 +0000

Rental Equipment Investment Corp. (REIC), a portfolio company of Kinderhook Industries, LLC, has announced its acquisition of Bigfork Rentals, Inc., based in Kalispell, Montana. This move is part of REIC’s strategic aim to expand its footprint in Montana, enhancing its rental equipment offerings and market presence. Kinderhook Industries, known for its focus on middle-market businesses, supports REIC in leveraging growth opportunities within the equipment rental sector. By integrating Bigfork Rentals into its operations, REIC aims to bolster its service capacity and customer reach in the region. Bigfork represents REIC’s ninth add-on acquisition under Kinderhook’s ownership and its 21st since inception. Financial terms of the transaction were not disclosed. Greg Gallagher, REIC CEO, said: “Bigfork has established a reputation for providing high-quality equipment and service. The acquisition enhances REIC’s presence in Flathead and Lake counties in Montana, enabling us to better serve our customers in the region.” “I am excited to have completed the sale of the company to REIC,” said Steve Ricci, Bigfork owner. “I want to thank all of our employees and customers for their work and loyalty over the years to build Bigfork into what it is today. I also want to thank the rental industry for all their support and for the opportunity to serve their members.” “The geographic proximity of Bigfork to our other general rental locations makes this acquisition highly strategic for REIC as we continue to build density,” said Paul Cifelli, managing director, of Kinderhook. “We are excited for REIC to continue its acquisitive track record that has established the business as the partner of choice in the ongoing consolidation of the equipment rental industry.” Caldera Law served as legal counsel to REIC. Financing for the transaction was provided by a syndicate led by PNC Bank, National Association with participation from Flagstar Bank, N.A., Axos Bank, BancAlliance Inc., Bank Hapoalim B.M., First Merchants Bank, U.S. Bank National Association, Stifel Bank, MUFG Bank, Ltd., Capital One, National Association.

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H&E opens new branch in Columbus Ohio

Mon, 24 Jun 2024 21:13:17 +0000

Effective June 24, 2024, H&E Rentals (H&E) announces the opening of its Columbus branch, the company’s first general rental location in the state of Ohio. H&E now operates in 31 states, and it has opened 21 new branches across the country and acquired nine others in just over a year. The facility is located at 2845 Fisher Road, Columbus, OH 43204-3539, phone 614 407-9900. It includes a fully fenced yard area, offices, and a repair shop and carries a variety of construction and general industrial equipment. “H&E’s expansion into central Ohio increases our presence in the Midwest, and our location in Columbus provides reach to a wide radius of projects across the state. We have assembled a diverse fleet and have the resources to serve customers extending to Dayton, Lima, Mansfield, Wooster, Cambridge, Parkersburg, Chillicothe, and all points in between. Our new facility is just off I-70, and our proximity to I-670, I-71, I-270, and other major roadways means that we can move rental equipment to job sites quickly and efficiently,” says Branch Manager Perry Rice. “We may be new to the Buckeye State, but we’re certainly not new to the equipment rental business. We look forward to establishing new relationships and showing customers our higher standard of service.” The Columbus branch specializes in the rental of aerial lifts, earthmoving equipment, telescopic forklifts, compaction equipment, generators, light towers, compressors, and more and represents the following manufacturers: Allmand, Atlas Copco, Bomag, Case, Club Car, Cushman, Doosan, Gehl, Generac Mobile, Genie, Hamm, Hilti, Husqvarna, JCB, JLG, John Deere, Kobelco, Kubota, LayMor, Ledwell, Lincoln Electric, Link-Belt Excavators, MEC, Miller, Multiquip, Polaris, Sany, Skyjack, SkyTrak, Sullair, Sullivan-Palatek, Tag, Towmaster, Unicarriers, Wacker Neuson, Yanmar, and others.

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Sunbelt Rentals acquires ABC Equipment Rental

Wed, 15 May 2024 01:54:37 +0000

Sunbelt Rentals has acquired ABC Equipment Rental, a multi-branch independent equipment rental provider in the Baltimore and Washington D.C. markets. “We are pleased to join forces with the Sunbelt Rentals team,” said Lee Lightner, President of ABC Equipment Rental. “Sunbelt’s national brand, extensive general tool and specialty equipment fleet, and deep roots in the Baltimore and Washington markets will make this a great combination for our customers and employees.” Catalyst Strategic Advisors served as the exclusive transaction advisor to ABC Equipment Rental.

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H&E Equipment Services completes acquisition of Lewistown Rental and affiliated companies

Wed, 01 May 2024 21:54:41 +0000

H&E Equipment Services, Inc. has announced the completion of its acquisition of Montana-based Lewistown Rental and three of its affiliated companies located in Havre, Glasgow, and Great Falls, Montana. The acquisition adds a comprehensive mix of equipment with an original equipment cost of approximately $28.5 million. Brad Barber, chief executive officer of H&E, stated, “With the addition of these four locations, H&E now has six locations in the state of Montana, addressing customer needs across the state. The acquisition is our third in the last six months and is indicative of our continued focus on expanding our geographic reach in the U.S. We are encouraged by the growing prospects for non-residential, industrial, infrastructure, and agricultural projects in Montana and look forward to establishing a strong presence in this vibrant state.” With the close of the transaction, H&E now operates 145 branch locations across 30 states.

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