Herc makes Houston acquisition
By Murray Pollok and Belinda SmartJanuary 04, 2021
Herc Rentals has acquired “substantially all the assets” of Houston-based Champion Rentals for an undlisclosed price.
Champion rents a wide range of equipment from four locations in the Houston area, and has around 100 employees. The deal, which is the first multi-location acquisition by Herc since it spun off from Hertz in 2016, means that it now has 12 stories in the city area.
“I am pleased to welcome Champion’s team members to Herc Rentals,” said Larry Silber, president and CEO of Herc, ”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.”
Silber said Herc had a solid balance sheet, strong free cash flow and a net leverage ratio “comfortably within” its target range of 2.5x to 3.5x. ”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.”