Herc makes 12 acquisitions in 2021
By Murray Pollok10 February 2022
Twelve acquisitions in 2021 – including seven alone in the final quarter of the year – helped Herc Rentals post record US$578 million revenues in the final three months of the year, with operating profits doubling to $71.8 million.
Herc revealed that it had invested $477 million in the 12 acquisitions, adding 37 locations in 11 US states. As well as its acquisitions, Herc added five new greenfield locations during 2021.
The company is expecting to more than double its net capital expenditure on fleet this year to between $820 million and $1120 million, in support of expected “strong growth” in 2022.
Rental revenues in the final quarter of 2021 were up 26.9% on the same period in 2020, while total revenues rose by 11.1%.
The lower overall growth rate resulted from a big reduction in sales of used equipment in 2021 as it retained equipment to meet demand.
Full year sales were 23.8% higher than 2020 at $1.91 billion, which is also a 12% increase on 2019, the most recent pre-pandemic year.
“We continued our ‘shift into high gear’ with an excellent fourth quarter,” said Larry Silber, President and CEO. “Rental revenue increased 26.9% over the prior year and dollar utilization was a record 44.6%.”
He added; “We shared our 2021 to 2024 annual goals for organic CAGR growth of 12% to 15% in rental revenue and 17% to 20% in adjusted EBITDA at our recent Investor Day.
“We have strong momentum and intend to invest in new locations and rental equipment to enhance our urban density and improve our operating leverage and scale.”