Herc Holdings Acquires Houston-based Champion Rentals
Herc Holdings Inc., operating as Herc Rentals Inc., announced Jan. 4, 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 company was founded, owned and led by James Horsley. 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 CEO. “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.”
Champion Rentals has been a perennial RER 100 listee for years, currently ranked at No. 88. Herc Rentals, headquartered in Bonita Springs, Fla., is No 3.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.