BONITA SPRINGS, Fla.--(BUSINESS WIRE)--Herc Holdings Inc. (NYSE: HRI), a leading North American equipment rental supplier operating as Herc Rentals Inc., announced today that it has acquired substantially all the assets of Houston-based Champion Rentals, Inc. Terms were not disclosed.
Champion is a full-service general equipment rental company comprising approximately 100 employees and four locations serving contractors and industrial, manufacturing and government customers in the Houston metropolitan area. The addition of Champion expands Herc Rentals’ Houston-area presence to 12 physical locations, which 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.
“This acquisition supports our long-term strategy to achieve greater density and scale in select urban markets across North America to better serve both our local and national customers. In addition, 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.”
About Herc Holdings Inc.
Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is one of the leading equipment rental suppliers with approximately 275 locations in North America. With over 55 years of experience, we are a full-line equipment rental supplier offering a broad portfolio of equipment for rent. Our classic fleet includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction and lighting. Our equipment rental business is supported by ProSolutions®, our industry-specific solutions-based services, which includes power generation, climate control, remediation and restoration, and studio and production equipment, and our ProContractor professional grade tools. Our product offerings and services are aimed at helping customers work more efficiently, effectively and safely. The Company has approximately 4,800 employees who equip our customers and communities to build a brighter future. Herc Holdings’ 2019 total revenues were approximately $2.0 billion. For more information on Herc Holdings and its products and services, visit: www.HercRentals.com.
