UNITED KINGDOM - Ashtead Group PLC, parent of Sunbelt Rentals, No. 11 on the RER 100, is exploring a partnership to help it grow its U.S. operations, which span 10 states and 72 locations, mostly in the Southeast.
"We're seeking to expand in the U.S. and we're looking for a way to get around the problem of our valuations in the U.K.," Ashtead chairman Peter Lewis told RER. "Our business rating does not allow us to realize our ambitions in the U.S."
Ashtead, the largest equipment rental company here with more than $410 million (U.S.) in annual revenue, has hired U.S. investment bank Salomon Smith Barney to review strategic options, "which could include a merger, joint venture or sale."
"A sale is our last choice," said Lewis, "and there is an absolute certainty we will not sell Sunbelt off [separately]."
A number of companies have made inquires recently regarding a range of options, according to Lewis.
"There will be a number of suitors ... most likely U.S. venture capital firms," said a U.K.-based analyst.
In the meantime, Sunbelt, which had estimated rental revenue of $112 million last year, will continue to open new locations and has some bids out for smaller acquisitions. "We expect to be at 76 locations by October and to add another 10 by the end of the fiscal year," Lewis said.
SPARTANBURG, S.C.- Sunbelt Rentals plans to open a branch here next month, marketing director Mark Pfaff told RER. The company recently opened outlets in Frederick, Md., and Winston-Salem, N.C.
Sunbelt, based in Charlotte, N.C., is No. 11 on the RER 100. It has more than 60 locations and 70 profit centers, including its specialty pump and generator division.
