Merger and acquisition activity in the US equipment rental sector is predicted to increase with Anthony Crane Rental, for one, embarking on a programme of takeovers made possible by last year’s refinancing.
National Equipment Services, Head & Engquist, Ringhaver Equipment and AmQuip Corporation are among those which have also been on the acquisition trail.
Anthony completed the purchase of Husky Crane of California on 31 March and as of mid-April had signed letters of intent with two more companies. Anthony’s chief financial officer, Dale Buckwater, who joined the company after it was taken over by venture capital firm Bain Capital (Finance firm buys Anthony Crane Sept99, p3), said further acquisitions could be expected.
Another acquisitive company is National Equipment Services (NES) which has spent about $250m in the crane industry since its first acquisition, Kentucky-based Falconite, early last year. Further acquisitions followed: R&R of Texas, Cormier Equipment of Maine and Shaughnessy Crane Services of Boston (NES acquires Shaughnessy Nov98, p13).
On 19 March NES completed on the purchase of a second Boston-based company, Wellesley Crane Service Inc. With 1998 revenues of $8.7m Wellesley is smaller than the $34m Shaughnessy.
NES chief operating officer Jim O’Neil said of the crane investment programme: “We haven’t stopped yet. We have identified cranes as a sector of the rental business that offers good potential for growth.” The total number of cranes run by NES companies now amounts to about 670. It also has a range of other equipment rental companies with more than 750 different types of machinery.
Head & Engquist acquired Martin Equipment of Dallas, Texas last year and as Cranes Today went to press was negotiating the acquisition of Coastal Equipment of Houston, Texas.
Ringhaver of Tampa, Florida concluded the acquisition of neighbouring Manitowoc Southeastern on 31 March, but will keep the name and merge in some operations of Ringhaver, so becoming a dealer for Grove as well as Manitowoc and Manitex in its south eastern territories. Mark Hollister of Ringhaver takes over as president of the expanded Manitowoc Southeastern operation from Tony Simmons who moves over to vice president, sales and marketing.
AmQuip Corporation of Bensalem, Pennsylvania, which already has just under 400 cranes in its fleet, placed orders for about 100 more at the Conexpo show in Las Vegas in March to replenish the fleets of the three to four companies that it plans to acquire up and down the east coast over the next six months, said general manager Gerry Couch.