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Deal creates equipment rental powerhouse
By MARK ALBRIGHT
Published July 21, 2006
Sunbelt Rentals Inc. has agreed to buy Fort Lauderdale-based NationsRent Cos. for $1.05-billion to create the country's third-biggest construction-equipment rental company. The acquisition signals the union of two heavy-equipment rental companies that currently operate 11 outlets in the Tampa Bay area plus NationsRent rental offices located inside five Lowe's home-improvement centers. Sunbelt, based in Charlotte, N.C., which caters to the construction trades by renting everything from Bobcats to scaffolding, downplayed the possibilities of combining locations and shrinking staff for efficiency. That's because they see little duplication between what had been the fourth- and sixth-largest players in the field behind industry-leading United Rentals. The sale also turns the page on another chapter of Florida billionaire Wayne Huizenga's sweeping vision of an auto dealer/rental vehicle empire. He formed NationsRent in 1997 by buying and combining 58 equipment rental companies in 26 states. NationsRent emerged from bankruptcy as a private company in 2003. Its Fort Lauderdale headquarters, which employs 50, now will be closed. "This combination will allow our employees to continue to serve our customers and an opportunity for career growth in one of the largest and most successful companies in our industry," said Jeff Putnam, chief executive of NationsRent, adding that shareholders will "realize an attractive return generated by our growth over the past three years." Sunbelt, the U.S. unit of British Ashtead Group PLC, will pay $495-million in cash, with the rest of the purchase in the form of assumed debt and bond redemptions. The deal also hinges on a $274-million share sale to existing investors. Buying NationsRent will add 268 outlets to Sunbelt's 209 and close the gap on market leader United Rentals Inc. and No. 2 Atlas Copco AB's Rental Services Corp. Ashtead is targeting the United States as more builders rent rather than buy gear. Information from Bloomberg News was used in this report. Mark Albright can be reached at albright@sptimes.com or 727 893-8252.
[Last modified July 21, 2006, 15:07:50]
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