Herc Holdings Inc., Bonita Springs, Florida, has acquired substantially all the assets of Champion Rentals Inc., headquartered in Houston, Texas.
Champion is a full-service general equipment rental company comprising about 100 employees and four locations. It serves contractors, industrial, manufacturing, and government customers in metropolitan Houston. The addition of Champion expands Herc Rentals’ Houston-area presence to 12 locations that collectively provide general and specialty equipment rental solutions and related services.
“I am pleased to welcome Champion’s team members to Herc Rentals,” said Larry Silber, president and chief executive officer. “Champion has served the Houston market since 1982 and has a strong reputation for excellent customer service and premium equipment. Our combined team and resources position Herc Rentals to be a preeminent equipment rental partner for the Houston market’s diverse mix of construction, industrial and government customers.”
Silber said that the acquisition supports Herc’s long-term strategy to achieve greater density and scale in select urban markets across North America to better serve both its local and national customers. “In addition,” said Silber, “Champion’s locations will facilitate the expansion of our Centers of Excellence concept for vital categories of equipment to support critical projects and essential operations throughout Houston and across the nearby Gulf region.”
The transaction represents Herc Rentals’ first multi-location acquisition since it became an independent, publicly traded company in 2016. The company expects the acquisition to be accretive to its earnings in the first year.
“Our disciplined capital management has contributed to a solid balance sheet, strong free cash flow and a net leverage ratio comfortably within our stated target range of 2.5x to 3.5x,” added Silber. “We are well positioned to pursue growth across a variety of fronts, including expansion of select equipment categories, greenfield and acquired locations, and niche opportunities, while remaining committed to a sound financial footing.”
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