Editorial Team
Editor
Murray Pollok
e-mail:
Tel: +44 (0)1505 850043
Staff Writers
LindseyAnderson,
AlexDahm, LindsayGale,
SandyGuthrie, Laura
Hatton, CristiánPeters,
D.Ann Shiffler, Helen
Wright, EuanYoudale
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Paul Marsden
Production Team
Production and
Circulation Director
Saara Rootes
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Ross Dickson
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Tel: +44 (0)1892 786245
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Jeff Gilbert
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Gary Brinklow
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Pippa Smith
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Paul Watson
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Paul Baker
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Josephine Day
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Hayley Gent
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Office Manager
Clare Grant
Business Development Director
PeterWatkinson
Publisher
James King
commen
t
April-May 2014
Volume 14 Issue 3
E
verywhere you looked in March there were acquisitions or significant deals being
made, with four big stories in three different continents, and all very significant in their
ownways.
First upwas UnitedRentals, spendingmore than $700million to acquire a sizeable pump rental
business, National Pump & Compressor. This played into United's strategy of diversifying away
frompure constructionmarkets –more than60%of National Pumps' sales arewith customers in
oil andgas or petrochemicals.
The price was high for a company with annual revenues of just over $200 million, but as our
correspondent Jeff Eisenberg writes in this issue, it might still prove to be a good investment if
Unitedcanhit thegrowth targets it has set (adoublingof pump rental revenueswithin fiveyears.)
The deal also emphasised that United continues to see big opportunities in its home market,
despite speculation about its intentions inother, emerging rental areas.
In Europe it was Zeppelin Rentals making the headlines with a deal to acquire a large part
of Hochtief’s Streif Baulogistik rental business. Apart from expanding Zeppelin’s activities– not
least in support of Hochtief – it also seemed to be a significant change of policy towards fleet
management by amajor European contractor.
The acquisition did not include Streif’s tower crane or formwork rentals operations, although
Hochtief is now considering its options for these activities. Hochtief said the salewas part of its
strategy to “concentrateonour corebusiness”. Itwill be interesting to seewhat decision itmakes
on its tower cranes and formwork – a sale would indeed signal a big shift in strategy towards
outsourcing.
TheMiddle East transaction, meanwhile, shows that diversificationworks bothways, with a car
rental company deciding that buying an equipment rental business made some sense: hence
Hanco of Saudi Arabia acquiring Byrne Equipment Rental, one of the biggest rental firms in the
Middle East. For Hanco, the deal gives it activities outside Saudi Arabia and the opportunity to
apply its car rental expertise inmanaging an equipment business.
Awidelyanticipated reversal of that - a car renter getting ridof its equipment business – finally
took place in March with Hertz making the decision to spin-off its Hertz Equipment Rental Corp
(HERC) division to shareholders (the spin-off will actually take place at the start of 2015). Some
shareholders had been agitating for a divestment for a while – HERC is a very capital thirsty
business – and the spin-off arrangement offers tax advantages. Exactly what it will mean for an
independent HERC remains tobe seen.
Although different in nature, the scale of the four transactions shows that equipment rental is
emerging from amergers and acquisitions slumber. Having emerged, we can expectmore.
Murray Pollok
Editor,
International Rental News
Correspondenceor comments shouldbe sent to:
TheEditor,
IRN
, Southfields, SouthviewRoad, Wadhurst, East Sussex, TN56TP, UK.
Tel: +44 (0)1892 784088
Fax: +44 (0)1892 786257
The paper in this magazine originates from timber that is sourced from sustainable forests, managed
to strict environmental, social, and economic standards. Themanufacturingmill has both FSC& PEFC
certification, and also ISO9001 and ISO14001 accreditation.
KHL’s
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Rental emerges
fromM&Aslumber
INTERNATIONAL
rental
Official magazine of the ERA
A KHL Group Publication
Volume 14 Issue 3 April-May 2014
NEWS
Hewden’s corefleet
strategy paying off
p54
Shortlists announced for
EuropeanRentalAwards
p25
LeighAinsworth onmaking
CoatesHiremore efficient
p13
Compaction
p39
INSIDE: ASSET TRACKING, APPLETON COLUMN
New rollers, plate compactors and rammers
IRE EXHIBITIONGUIDE
p17
Top suppliers sign up for
Amsterdam rental show
3
COMMENT
IRNAPRIL-MAY 2014
NEWS
A KHL SPECIAL REPORT
A COMPREHENSIVE GUIDE TO THE
2011 GLOBAL RENTAL MARKETS
FROM
INTERNATIONAL RENTAL NEWS
THE RENTAL
REPORT
R
Ranking theworld’s largest
rentalcompanies
gEurope’s
rentalcompa i
A KHL Group Publication
IRN100: 2004-2008
NEWS
INTERNATIONAL
rent
l
IRN
100
E
Ra
n
k
i
n
r
g
e
s
t
A KHL SPECIAL REPORT
10 YEARS OF RENTAL MANAGEMENT ADVICE FROM
INTERNATIONAL RENTAL NEWS
MAGAZINE
MANAGING
RENTAL
4-200
8
N
nes
2004-2005
0
0
NEWS
INTERNATIONAL
rental
IRN
100
Ranking theWorld’s top 100
rental companies
E
xpanded versionof the IRN
100
published in
theJune 2013 issueof
InternationalRentalNews
