Hertz Equipment Rental’s Mongolia Franchise Acquires Construction Services Firm
Mongolia Holdings, the Hertz Equipment Rental Corp. franchise in Mongolia has agreed to acquire Monroad LLC, one of the largest road construction and earthmoving companies in the country. Monroad offers a full range of construction services including heavy equipment rental, construction and maintenance of roads, bridges, railroad lines, drainage work, earthwork and flood protection dams.
Monroad counts the Mongolian government and Oyu Tolgoi LLC (Rio Tinto’s Turquoise Hill Mine) as two of its largest completed-project customers.
“This transaction marks a significant breakthrough for our 2016 business strategy,” said Brad Siniscalchi, president of Mongolia Holdings and a 23-year veteran of Hertz Equipment Rental. “Monroad’s existing facilities, capabilities and staff should significantly streamline and expedite the deployment of our Hertz Equipment Rental franchise operation in Ulaanbaatar, while potentially saving significant hard and soft launch costs. Mongolia Holdings will now possess a much wider array of capabilities necessary to meet growing demands for equipment and construction services, driven in part by international infrastructure development initiatives like ‘One Belt, One Road’ and mega-mining industry projects like Oyu Tolgoi.”
“Although it has not previously been our core focus, Monroad has operated an equipment rental business in Mongolia for many years,” added Tengis Garamgaibaatar, CEO of Monroad. “We plan to bring Monroad’s facilities, equipment, highly trained staff, equipment maintenance capabilities, logistics, market knowledge, reputation and enthusiasm to the deployment and build-out of Hertz Equipment Rental operations throughout Mongolia. The expanded platform makes us better prepared to tackle larger projects and to more aggressively execute the growth strategy of our existing road building and earthmoving operations.”
Michael Ussery, former U.S. ambassador and chairman of Mongolia Holdings said: “In addition to all the obvious benefits of this transaction, the consolidation of Monroad into Mongolia Holdings facilitates the assimilation of 15 years of market knowledge, experience and relationships, which cannot be easily replicated by other market participants. In addition, with the recent $4.4 billion refinancing announcement of Rio Tinto’s expansion of the Oyu Tolgoi mega-mine, it’s not unreasonable to expect greater economic growth for this exciting market, which, in turn could measurably increase demand for Monroad’s road construction and earthmoving services.”
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.