Fort Lauderdale, Fla. History: NationsRent was founded in 1997 by Jim Kirk, founder of the environmental construction firm OHM; former OHM executive Gene Ostrow; and H. Family Investments, a company controlled by the son of billionaire H. Wayne Huizenga. Kirk had become familiar with the rental industry during his tenure at OHM, which rented as much as $35 million in equipment a year from companies such as Hertz Equipment Rental Corp.
NationsRent entered the rental business in September 1997, when it paid $23.4 million to acquire Sam's Equipment Rental in Columbus, Ohio. By the time of its August 1998 initial public offering, the company had acquired 16 companies - including Sam's, Bode-Finn, Job Rental, Associated Rentals and some General Rental locations - and opened six new stores, giving it 68 locations in nine states. Amid one of the tightest IPO markets in recent memory, NationsRent sold 30 percent of the company for $104 million. While the stock has seldom gone above its $8 per share IPO price, the company has continue to expand, growing to more than 120 locations.
In October 1998, it merged with A-1 Rental, based in Fort Worth, acquiring 13 Texas locations from rental industry veteran Don O'Neal, who now serves as company president. NationsRent raised $175 million in a high-yield bond sale last month, and is expected to expand to California, among other regions, in the near future.
Key officers: Jim Kirk, chairman and CEO; Don O'Neal, president; Gene Ostrow, executive vice president and chief financial officer; Phil Petrocelli, executive vice president; Kris Hansel, vice president and controller; Pamela Beall, vice president and treasurer; H. Wayne Huizenga, director.
Employees: More than 1,700.
Locations: 135 in 20 states, including definitive purchase agreements.
1998 volume: Estimated pro forma revenue of about $440 million.
Rental/sales ratio: 73 percent rental, 27 percent sales.
Customer breakdown (as a percent of revenue): 66 percent contractor, 28 percent industrial, 6 percent municipal and homeowner.
Ticker symbol: NRI on the New York Stock Exchange.
Philosophy: "We see ourselves as much more than a consolidator. Yes, we are buying companies to create a platform to grow from, but we think the vision that we have truly differentiates us from the rest of the consolidators."
