Herc Holdings has entered into a purchase agreement to acquire the assets of CBS Rentals, a 14-location equipment rental company based in Conroe, Texas. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close before the end of the year.
CBS is a full-service general rental company with about 190 employees and 12 locations across Texas, with additional branches in Carlsbad, N.M., and Kingsport, Tenn. The acquisition of CBS expands Herc Rentals’ presence in Texas – one of the largest equipment rental markets in North America – to 38 physical locations, providing general, construction and industrial and specialty equipment rental solutions and related services.
“I look forward to welcoming CBS Rentals to Team Herc,” said Larry Silber, Herc president and CEO. “Like Herc Rentals, CBS has more than 56 years of history, substantial equipment rental experience and a strong reputation for exceptional customer service, top-quality equipment and operational excellence. Our combined teams and resources position Herc Rentals to be a preeminent equipment rental partner across Texas servicing a diverse mix of construction, industrial and government customers. With many of its locations in major metropolitan markets, the addition of CBS 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.
“We expect the acquisition to be accretive to earnings in the first year. We remain well-positioned to pursue growth through a variety of initiatives, including investment in key fleet categories, greenfield branches and acquired operations, while maintaining our commitment to a sound financial footing.”
The acquisition was the second major purchase of a rental company in Texas for Herc, which acquired Houston-based Champion Rentals at the beginning of the year.
CBS Rentals is No. 57 on the RER 100. Herc Rentals, based in Bonita Springs, Fla., is No. 3.