Herc Holdings to acquire Cloverdale Equipment Company
Herc Holdings Inc announces it has entered into a purchase agreement to acquire Cloverdale Equipment Company.
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the second quarter of 2022. Terms were not disclosed.
Cloverdale is a full-service general equipment rental company comprising approximately 120 employees and four locations serving construction and industrial customers with core operations in the metropolitan areas of Detroit and Grand Rapids, Michigan; Cleveland, Ohio; and Pittsburgh, Pennsylvania. The addition of Cloverdale expands Herc Rentals’ presence in this coverage area to 14 physical locations, which collectively provide general and specialty equipment rental solutions and related services.
“I look forward to welcoming Cloverdale Equipment to Team Herc,” says Larry Silber, president and chief executive officer. “With nearly 60 years of history, Cloverdale’s team brings 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 in the Great Lakes region and nearby markets, serving a diverse mix of construction, industrial and government customers. With three of its locations in major metropolitan markets, the addition of Cloverdale 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, Cloverdale has deep relationships with key industrial customers whose unique construction and maintenance needs continue to grow, which Cloverdale serves through self-perform work and a suited-to-purpose rental fleet, including specialty aerial and material handling equipment.
“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.”
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