Sumitomo on Sunstate’s trenching rentals acquisition

Photo: Sunstate Equipment Co

Sunstate Equipment Co is expected to double its trench safety rental revenues with the acquisitions of Trench Shore Rentals and Trebor Shoring Rentals, according to Sunstate’s owner, Sumitomo Corporation

Sumitomo, which fully acquired Sunstate in 2017, said the trench rental market is anticipated to reach approximately JPY300 billion (€1.83 billion) by 2025, backed up by increasing demand for new infrastructure projects and more stringent safety standards at construction sites.

Sumitomo stated that the acquisition of Arizona-headquartered TSR “holds significance not only due to the geographic alignment with Sunstate’s core markets in the region,” but also due to the expansion of its existing trench safety equipment rental business.

The deal for the companies, which operate in Arizona, California, and Texas, was announced last month and expands Sunstate’s footprint to 19 branches across nine US states, including existing locations in Washington, Oregon, Texas, Oklahoma, Georgia, North Carolina, and Florida.

“Leveraging its established industry expertise, Sunstate aims to further strengthen its market position and grow the revenue through the acquisition of TSR and capitalize on TSR’s specialised knowledge in trench rental,” Sumitomo said. 

Drew Carson, senior vice president of sales, Sunstate Equipment, said last month of the deals, “M&A is a common activity in our industry, but it’s a rare opportunity to acquire a seasoned rental company that seamlessly integrates with our existing trench business while also creating sustainable, long-term synergies across our general rental business.”