Herc acquisition expands presence in Texas
By Belinda Smart17 August 2021
US company Herc Rentals has entered an agreement to acquire all the assets of Texas-based CBS Rentals. The price has not been disclosed.
CBS has 190 employees and 12 locations in Texas as well as locations in Carlsbad, New Mexico and Kingsport, Tennessee. It has 190 employees and was owned by Jason Herin, who joined the company in 2012.
Texas is a major equipment rental market in North America and CBS will expand Herc’s presence in the state from 26 to 38 outlets, offering general and specialty equipment rental solutions and related services.
A full-service general equipment rental company, CBS’ fleet includes air compressors, earth moving equipment, forklifts, electrical generators, general construction equipment, heating and ventilation, aerial lifts, concrete and masonry tools, pumps, compaction and paving.
Herc Rentals president and CEO Larry Silber said the two companies’ combined teams and resources would position Herc Rentals as “a preeminent equipment rental partner across Texas” serving construction, industrial and government customers.
“With many of its locations in major metropolitan markets, the addition of CBS supports our long term strategy to achieve greater density and scale in select urban markets across North America, to better serve both our local and national customers,” Silber said.
He said Herc’s earnings per share (EPS) were expected to increase in the first year after the deal goes through.
“We remain well positioned to pursue growth through a variety of initiatives, including investment in key fleet categories, greenfield branches and acquired operations, while maintaining our commitment to a sound financial footing.”
Herc Rentals reported a 36.8% increase in equipment rental revenue to $448.0 million in the second quarter of 2021, from $327.6 million for the same period last year.
Its acquisition of CBS is subject to customary closing conditions and regulatory approvals and is expected to close by the end of 2021. The terms of the agreement have not been disclosed.
Herc has 4,800 employees across 280 locations in North America. Its fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting.