Start-up US equipment rental holding company Rental Equipment Investment Corp (REIC) plans to continue to consolidate presence in US North West in 2016.
REIC is an equipment rental holding company led by former Neff Corp CEO Kevin Fitzgerald and other private investors. The company has made a string of acquisitions since its launch in 2014, most recently Hillside Rental, an equipment rental company based in Evans, Colorado, US, which it bought at the start of this year.
CEO Mr Fitzgerald told IRN, “Currently, there is a good market for acquisitive companies like us. Given the number of rental companies in the US, consolidation is a natural fit – but many of these entrepreneurs have established a good reputation in the market, and will only sell to someone they trust and respect. I go in person to visit the companies that we acquire – the relationships are very important.
“Our vision going forward is to maintain the spirit, culture and environment of the companies we acquire, while taking advantage of having a centralised financial structure and the synergies this can afford.”
Mr Fitzgerald said the company’s immediate plan was to continue to strengthen its presence in the US North West.
“Right now, we’re happy operating in the North West of the US, and our plan is to continue to strengthen our presence in this region.
“Our fleet consists of 50% to 55% aerial work platforms, and the rest consisting of equipment such as forklifts, mini excavators and some general tools. We’re seeing strong utilisation, and we expect the product mix to remain around the same in the future.
Mr Fitzgerald forecast a solid year this year, with momentum behind the company building.
“Our outlook is strong for 2016, we expect to see revenue growth of between 7% and 8% year-on-year, and we are planning further expansion too. In fact, one of the main challenges we face in handling this rapid growth is keeping quality people in our employment. But we’re very positive on the future.”