Private equity fund Next Capital, which last year spent AU $139 million (about U.S. $122 million) to acquire New Zealand-based Hirepool, last week acquired two Australian rental companies, On Site Australia and On Site Industrial Rentals.

Next Capital acquired a 60 percent stake in the two companies, with the remainder held by vendors and senior management.

Next co-founder said the company expected to capitalize on synergies between the Australian and New Zealand rental companies. He added that the growing trend towards rental rather than buying equipment will benefit the companies as well.

Hirepool managing director Tenby Powell, who retained a 20 percent share in Hirepool, will take a similar share of On Site Australia and has become a director of the new group. The synergies will benefit customers doing business in both countries, Powell added.

On Site Australia, valued at about AU $109 million (about U.S. $95.6 million), was established in Sydney in 1999 and has since expanded to 17 branches in the states of New South Wales, Queensland, Victoria and West Australia.