May 23, 2005 — Sunbelt Rentals, a wholly-owned subsidiary of Ashtead Group plc, recently acquired seven South Florida branch locations from HSS RentX for approximately $1.7 million (subject to adjustment dependent on asset verification at closing). According to a recent report, turnover of these operations is valued at about $4.5 million.
After consolidating two of the acquired locations into nearby existing branches, Sunbelt will serve the greater South Florida market from its expanded network of 12 locations. In addition, it expects to purchase one of the properties for $800,000 (subject to completion of satisfactory environmental inspections).
“After looking at the local HSS RentX business and meeting its employees and customers, we were convinced that the acquisition was the right vehicle to significantly grow our presence in the greater South Florida market,” says Doug Bertz, Sunbelt's regional vice president responsible for the Florida markets. “We are working closely with on-site management to implement a fleet investment and growth plan that will more than double the product offering at the new branches over the next six months.”
According to Cliff Miller, president of Sunbelt Rentals, this move is an integral part of the company's plan to increase share in targeted major markets. “This [acquisition] gives us the opportunity to cluster significant infrastructure and better serve our customers,” he says. “Our response to last year's unprecedented hurricane season is a case in point: In less than 48 hours, our staff mobilized over $100 million of rental equipment from other states to supplement existing equipment in the hurricane affected areas. With this acquisition, we will have additional resources in the South Florida market to better serve both homeowners and commercial customers.”
