Herc Holdings has entered a purchase agreement to acquire Cloverdale Equipment Co., based in Oak Park, Mich., a suburb of Detroit. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the second quarter. Terms were not disclosed.
Cloverdale Equipment Co. is a general equipment rental company comprising approximately 120 employees and four locations and serving construction and industrial customers with core operations in Cleveland, Pittsburgh, Detroit and Grand Rapids, Mich. The addition of Cloverdale Equipment Co. expands Herc Rentals’ presence in this coverage area to 14 physical locations, which collectively provide general and specialty equipment rental solutions and related services.
“I look forward to welcoming Cloverdale Equipment to team Herc,” Larry Silber, president and CEO of Herc Rentals, said. “With nearly 60 years of history, Cloverdale’s team brings 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 in the Great Lakes region and nearby markets, serving a diverse mix of construction, industrial and government customers. With three of its locations in major metropolitan markets, the addition of Cloverdale 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.
“In addition, Cloverdale has deep relationships with key industrial customers whose unique construction and maintenance needs continue to grow, which Cloverdale serves through self-perform work and a suited-to-purpose rental fleet, including specialty aerial and material handling equipment.
“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.”
Cloverdale Equipment Co. is in its 58th year in business, owned and operated by the same family. Owner Todd Moilanen is the grandson of founder Ben Maibach Jr. The company’s top product lines include JLG, Genie, MEC, SkyTrak, National Crane, Broderson Cranes, Doosan, VersaLift and Star Industries. The company has been continually listed on the RER 100 for years, ranked No. 74 on the 2021 list, with $33.6 million in rental revenue and $48.5 million in total revenue in 2020.
Herc Rentals, based in Bonita Springs, Fla., is No. 3 on the RER 100.
