Herc Holdings to acquire Texas-based CBS Rentals
Herc Holdings Inc./Herc Rentals Inc., has entered a purchase agreement to acquire substantially all the assets of Texas-based CBS Rentals (CBS).
The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close prior to the end of 2021. Terms were not disclosed.
CBS is a full-service general equipment rental company comprising approximately 190 employees and 12 locations serving construction and industrial customers throughout Texas, as well as locations in Carlsbad, New Mexico, and Kingsport, Tennessee. The addition of CBS expands Herc Rentals’ presence in Texas — one of the largest equipment rental markets in North America — to 38 physical locations, which collectively provide general and specialty equipment rental solutions and related services.
“I look forward to welcoming CBS Rentals to Team Herc,” says Larry Silber, president and chief executive officer. “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 serving 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.”
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