United Rentals last week finalized the acquisition of Atlantic Rentals, one of Canada’s largest rental companies. Based in Woodstock, New Brunswick, Atlantic has 16 locations in Nova Scotia, New Brunswick and Prince Edward Island, making it by far the dominant player in Canada’s Maritime provinces.
United paid, in round terms, approximately $30 million U.S. for Atlantic, Chuck Wessendorf, United’s vice president for investor relations and corporate communications, told RER. Established in 1960, Atlantic, No. 67 on the RER 100, had annual revenues of about $35 million U.S. The company primarily serves the rental needs of construction, industrial, forestry, fishing and government customers. Atlantic represents more than a dozen major manufacturers, including Amida, Bandit, Bomag, Bosch, Ingersoll-Rand, JLG, Nissan Forklifts, Stow, and Trak.
“The acquisition of Atlantic’s highly respected organization enables us to expand into a new market, the Maritime Provinces,” said John Milne, United Rentals president and chief financial officer. “We share a common philosophy of providing customers with expert solutions that are complete and convenient. United Rentals now serves customers in all 10 provinces with approximately 100 Canadian branches and 1,250 employees.”
The acquisition is United’s second this year, having acquired Alberta-based aerial specialist Skyreach Equipment in January. Wessendorf added that the company will continue to make occasional acquisitions to expand its footprint when it makes sense to do so, but emphasized that the purchase of Atlantic should not be viewed as a signal that United plans a major expansion.
“We don’t wish to further leverage the company,” he said, adding that United is paying down debt and will continue to do so.
Greenwich, Conn.-based United Rentals, No. 1 on the RER 100, plans to announce its third quarter earnings on October 20.
