EDMONTON, Alberta -- Hertz Equip-ment Rental Corp. last month agreed to acquire Certified Rentals, one of Canada's largest tool and equipment rental companies.
HERC also added seven new locations last month, opening four start-ups and acquiring S&R Rentals in Missouri and Cal Star Rentals in California.
According to a non-binding letter of intent, HERC subsidiary Hertz Canada Limited will pay an undisclosed amount of cash to purchase Certified from oilfield service company Precision Drilling Corp.
Upon completion, the acquisition will solidify HERC's position as a leading equipment supplier north of the border, especially in western Canada. Certified, based here, operates 15 branches in Alberta, British Columbia, Manitoba, Ontario and Saskatchewan. Certified, an aerial specialist ranked No. 28 on the RER 100, had 1997 sales of $45 million (U.S.), including $35 million (U.S.) in rental revenue.
"Certified is a great company with outstanding management and employees; however, in this current environment, [we] have chosen to focus ... on oilfield services," said Precision chairman, president and CEO Hank Swartout.
The deal is subject to regulatory compliance and approvals from each company's board of directors, but is expected to be completed by the end of this month. Last year, HERC acquired Canadian companies Matthews Equipment (seven locations) and Wee Rents (three locations). HERC was also expected to complete the acquisition of three-location Superior Rentals in Canada last month.
The company's latest branch openings are in Indianapolis; Myrtle Beach, S.C.; Cumming, Ga.; and Little Rock, Ark. HERC opened 23 start-ups in 1998.
Single-location Cal Star in Fresno, Calif., and S&R Rentals, with locations in Troy and Fenton, Mo., bring Park Ridge, N.J.-based HERC's total locations to 206 in North America - 50 of which were acquired in 10 deals last year.
