NES Acquires Traffic Safety Specialist, Others EVANSTON, Ill. - National Equiment Services acquired Phoenix-based Barricade & Light Rentals last month, NES CEO Kevin Rodgers told RER. The company, which specializes in traffic safety equipment, has branches in Tucson, Flagstaff and Kingman, Ariz., and had 1998 with revenues of about $9 million, primarily in rentals.
As with most NES acquisitions, the company, which was founded in 1975, will continue to operate under its own name. Former owner Dick Cole will stay on to run it.
In other NES news, its Falconite Equipment division recently acquired the Cincinnati branch of Birmingham, Ala.-based Equipment Finders from owner Russ Pyles. Falconite officials told RER that Pyles sold the outlet in order to focus his company on its markets in the South, where it has several branches.
Also, NES subsidiary Shaughnessy Crane Service opened a branch in New Haven, Conn., last month. Located in a 20,000-square-foot building close to well-traveled Interstate 95, the branch is Shaughnessy's sixth location.
SCS president Steve Shaughnessy said the branch will initially focus on aerial work platforms and rough-terrain forklifts. Shaughnessy added that he may add smaller itemssuch as light towers, compressors and generators. But he has no intention of converting the company, which "specializes in lifting materials off the ground," into a general rental company. Richard Naylor is branch manager and Scott Gorton is sales manager in New Haven.
Boston-based Shaughnessy also has branches in Springfield and Worcester, Mass., Auburn, N.H., and East Providence, R.I.
NES has acquired 22 companies and has 110 locations in 25 states, with several acquisitions pending.
Western Power Expands Rental Effort MUKILTEO, Wash. - Western Power & Equipment, No. 67 on last year's RER 100, opened a rental branch here, north of Seattle, last month and may soon add another in Portland, Ore. The Case dealer opened its first rental-only store in Kent, Wash., last year.
Western Power is also expanding rental operations at its Sparks, Nev., and Pasco, Wash., retail outlets, and plans to extend the rental focus throughout its 25-location, five-state network, CEO Dean McLain told RER.
"We're going to move retail and service back to our bigger complexes and make some of our branch stores rent-to-rent," McLain said. "We have dedicated ourselves to becoming more efficient in rental. We are going to continue to open rent-to-rent stores. We're even looking at acquisitions."
Western Power's recent second-quarter fiscal report showed year-to-date rental revenues up 82 percent over the same period last year, including a jump of 162 percent for the second quarter, ended January 31.
Total year-to-date revenues, at $81.6 million, were up 7 percent over the same fiscal 1998 period. However, net income was $960,000 compared with $1.13 million. The company attributed the disappointing retail results to a slowing Northwest economy and "the effects of gray-market machines."
United Offering Priced at $30 GREENWICH, Conn. - United Rentals' secondary public offering of 8 million shares of common stock was priced last month at $30 per share. The company, based here, sold 2,290,000 of the shares, and 5,710,000 were offered by the Colburn Foundation, a non-profit corporation set up by Richard Colburn, former U.S. Rentals chairman and current United Rentals chairman emeritus.
United also granted the underwriters an option to purchase up to 1.2 million additional shares to cover over-allotments, with net proceeds from over-allotment shares to be paid to the company. Goldman, Sachs & Co. and Donaldson, Lufkin and Jenrette Securities Corp. underwrote the offering.
United Buys AAA in Knoxville, Tenn. KNOXVILLE, Tenn. - United Rentals has acquired AAA Rental Center, with two locations here, and Empire Equipment Rentals, a one-location general rental company in Folsom, Calif. Terms of the deals were not disclosed.
Former AAA Rental Center owner S.G. Walker Jr., who will consult for six months before retiring, founded the company 39 years ago, focusing on the construction and general tool markets.
Walker's son, Dan, and daughter, Pam, also have contracts to stay on for three years and six months, respectively.
United Rentals, Greenwich, Conn., now has five locations in Tennessee and more than 80 in California.
Doran Jr. Leaves United Post GREENWICH, Conn. - John Doran Jr., who served as president of Rental Tools & Equipment until the Upper Marlboro, Md.-based company was sold to United Rentals, has resigned as a district manager at the industry's biggest rental company.
Sources said Doran Jr., who could not be reached for comment, quit to pursue other interests. It is not known whether John Doran Sr., who founded Rental Tools, will continue as a consultant to United.
United purchased 21-location Rental Tools, No. 17 on last year's RER 100, in August for a reported $125 million. United, based here, has since consolidated operations of at least two former Rental Tools outlets in the mid-Atlantic region.
ARA Show Attendance Off From 1998 LAS VEGAS - The American Rental Association show held here in February attracted the second largest number of rental delegates and attendees in the show's 43-year history.
The four-day convention brought in a total of 14,542 attendees, including 6,778 rental center personnel from 2,756 rental companies, 6,421 exhibitors representing 709 companies and 1,343 visitors.
Last year's record-setting trade show in Orlando, Fla., boasted an overall attendance of 15,163 composed of 7,077 rental center personnel representing 3,037 rental stores and 6,664 exhibitor personnel from 714 companies.
The decline in attendance could be attributed, in part, to the ongoing consolidation in the industry, the association said.
Some Union Charges vs. HERC Dismissed MILWAUKEE - In a ruling that partially vindicates Hertz Equipment Rental Corp., the National Labor Relations Board here recently dismissed several charges of unfair labor practices brought against the equipment rental giant by a local union.
However, the NLRB was still working with the company and the Pewaukee, Wis.-based International Union of Operating Engineers Local 139 to reach a settlement on the remaining charges. Officials at both Park Ridge, N.J.-based HERC and the union would not comment although both sides expressed optimism that an informal settlement would become official soon.
Because the union can appeal the February 26 dismissal, NLRB officials would not disclose which specific charges against Park Ridge, N.J.-based HERC were dropped. In a filing with the NLRB last year, the union alleged that HERC restrained employees attempting to picket its Milwaukee branch and discriminated against employees who wished to unionize in hiring and promotions.
Ex-ACM Group Forms Lift Start-up MESA, Ariz. - Four former employees of ACM Equipment Rental and Sales Co. recently left the company to found a new rental business here focused on lift equipment.
Diamondback Rental and Sales Co., co-owned by Don Myrick, Daniel Deatherage, Mike Makinster and Mark Richter, opened earlier this year with eight employees and about 350 pieces in its inventory.
"We are focusing on the aerial and reach forklift markets," said Myrick, who is the majority stock holder in the company. "We will have a small fleet of backhoes and loaders and some other light construction equipment, but we're not getting into any hand tools or earthmoving equipment. Myrick served as rental general manager for three years at Phoenix-based ACM, which has six locations in the Southwest and is a division of ICM Equipment Co. (No. 13 on last year's RER 100). Deatherage was an ACM rental service manager; Makinster and Richter were sales reps.
"A lot of large companies have forgotten what got them there, which is the personal touch," Myrick said. "We are taking care of the customer the way they used to be taken care of before any of this consolidation took place."
Fluor to Restructure, Separate American IRVINE, Calif. - American Equip-ment Co., No. 8 on last year's RER 100, will be managed as a stand-alone unit apart from Fluor Daniel as part of a restructuring announced last month by Fluor Corp., based here.
American Equipment, Greenville, S.C., will become part of Global Services, one of four new business groups created by Fluor. James Stein will head the group, reporting to Fluor chairman and CEO Philip Carroll.
The restructuring will eliminate 5,000 jobs by the end of the year, mostly within Fluor Daniel, and reduce overhead by $160 million annually, according to the company, which will not provide severance pay or benefits to the fired employees. Fluor will take a one-time charge of $130 million in its second quarter to implement the actions, which were initiated due to "deteriorating business environments" in Asia and Latin America.
Under the plan, American Equipment and other Global Services units will have profit performance targets to be measured against competitors, with a "near-term priority for substantial improvement in the return on assets."
As a member of Fluor Daniel's Diversified Services Group, American had 1998 revenues of $622 million, including $173 million in rental.
Rental Center Owner Bob Conly Dies NEWARK, Del. - Bob Conly, co-owner of General Rental, died recently of liver cancer at the ageof 47. His partner, brother Gary Conly, will continue to operate the company, based here, which opened a branch in Middletown in January.
Mr. Conly is survived by his wife, Betsy, and four children.
Prime Phases Out M&A Post HOUSTON - As part of a restructuring that involves scaling back its acquisition activity, Prime Equipment recently promoted director of mergers and acquisitions Jon Daggett to director of international business.
Jerry Lane, who was named director of international business last year, is now general manager of the company's Northwest division, serving Oregon and Washington. Prime, based here and No. 3 on last year's RER 100, said it is not actively looking to fill the M&A post.
"We're not going to be focusing on acquisitions as aggressively as we have in the past," said Robin Bennett, director of marketing. "Jon Daggett will still handle M&A although those duties have started to scale back." Daggett's primary responsibility will be to grow Prime's international business, which includes branches in Canada, Mexico and Puerto Rico.
In other news, the company announced that it has closed branches in Madras and Bend, Ore.
Ritchie Bros. to Acquire Forke LINCOLN, Neb. - Ritchie Bros. Auctioneers has reached an agreement to acquire Forke Auctioneers, its most significant competitor in the auction industry. The deal, expected to close this month, would bring about $350 million in annual sales to Ritchie, which surpassed the $1 billion mark in annual sales for the first time in 1998.
Forke, based here, has a strong presence in Florida, North Carolina and New Mexico - markets that will complement Ritchie Bros.' 11 existing auction sites in the U.S. and six in Canada.
Ritchie Bros., based in Vancouver, B.C., has 21 sites worldwide.
Butler Opens N. Dakota Branch JAMESTOWN, N.D. - Caterpillar dealer Butler Machinery Co., a longtime player in the Dakotas' rental market, plans to open a new branch here this month.
The Jamestown outlet will be a full-service location, offering rental, sales and service of equipment. The April 1 opening of the branch, Fargo, N.D.-based Butler, No. 52 on last year's RER 100 with $22.3 million in 1997 rental revenue, will have nine locations in the Dakotas.
WPE Expands Rental Effort MUKILTEO, Wash. Western Power & Equipment, No. 67 on last year's RER 100, opened a rental branch here, north of Seattle, last month and may soon add another in Portland, Ore. The Case dealer opened its first rental-only store in Kent, Wash., last year.
Western Power is also expanding rental operations at its Sparks, Nev., and Pasco, Wash., retail outlets, and plans to extend the rental focus throughout its 25-location, five-state network, CEO Dean McLain told RER.
"We're going to move retail and service back to our bigger complexes and make some of our branch stores rent-to-rent," McLain said. "We have dedicated ourselves to becoming more efficient in rental. We are going to continue to open rent-to-rent stores. We're even looking at acquisitions."
Western Power's recent second-quarter fiscal report showed year-to-date rental revenues up 82 percent over the same period last year, including a jump of 162 percent for the second quarter, ended January 31.
Total year-to-date revenues, at $81.6 million, were up 7 percent over the same fiscal 1998 period. However, net income was $960,000 compared to $1.13 million. The company attributed the disappointing retail results to a slowing Northwest economy and "the effects of gray-market machines."
The Federal Trade Commission has granted termination of the Hart-Scott-Rodino waiting period for the proposed merger of Rental Service Corp. and NationsRent, according to officials at the companies.
The decision essentially ensures that the government will not hold up the merger, which is expected to close in the next several months, according to a NationsRent official. The merger is still subject to other conditions, including shareholder approval.
Scottsdale, Ariz.-based RSC and Fort Lauderdale, Fla.-based NationsRent agreed to merge in January in a deal that would create the equipment rental indust ry's second billion-dollar company.