Key rental acquisitions of the year so far

The rental acquisitions of the year so far may not have been at the scale of last year’s Herc/H&E merger in the US, but they still tell us something about the rental market.

Subdued market conditions in much of northern Europe has meant that a lot of the M&A activity has been in the best performing economies, like Spain and Italy, where both Kiloutou and Alayan have been active.

These deals say as much about the growth ambitions of the two companies as they do about market conditions, both being intent on building significant market shares in southern Europe. Full story here.

cpc and GLG will ‘significantly’ expand Zeppelin Rentals’ construction logistics services. (Image: Zeppelin)

Kiloutou’s recent deal to acquire KDM Hire in Ireland – a respected, €42 million revenue business – is perhaps the most significant of the year so far.

It is Kiloutou’s first foray into the UK (via Northern Ireland) and a further shift northwards for the France-based company. Read the full story here.

Site solutions play

In Germany, meanwhile, Zeppelin Rentals’ acquisition of site logistics business Constellation Baulogistik tells us that its strategy to become a full supplier of equipment and site solutions is continuing, even as Germany’s economy struggles to regain its former strength.

Details of the acquisition can be found here.

Photo: Renta Group

Another of Europe’s fastest growing business, Finland’s Renta Group, signalled that while the rapid expansion of its first few years has slowed somewhat, it remains in acquisitive mode, adding Danish business Nordjysk Lift earlier this year and expanding its depot network in Denmark from 16 to 27 locations. Read about Renta’s expansion in Denmark.

In the Middle East, Dubai-based Byrne Equipment finds itself with a new majority owner, a Bahrain-based banking group. The new owner promises to accelerate Byrne’s growth path, including investment in new verticals. Full story here.

It remains to be seen the extent to which these plans will be adjusted as a result of the current Iran-US situation.

Asia and USA?

In Asia, meanwhile, Nikken Corp is the latest Japanese rental business to invest outside its domestic market, acquiring Chadwick Forklifts Pty Ltd (CFL), an Australian re-rentals specialist based in Victoria.

Japan’s domestic market is large and mature, so the country’s four largest rental businesses are investing in rental operations in South East Asia and Australia. More here.

What about the US? There are always small, regional deals taking place, with Sunbelt Rentals among the frequent buyers, but major acquisitions have not been in evidence.

Instead, it is the growing maturity and scale of US rental businesses that is reflected in recent IPOs on the New York stock exchange, with both Ashtead Group (now Sunbelt Rentals) and EquipmentShare becoming listed on the NYSE.

There are reports – via Bloomberg - that Aggreko is about to join them.