Herc Holdings Inc. (NYSE: HRI) inked an acquisition agreement to buy Cloverdale Equipment Company. Cloverdale is a full-service general equipment rental firm with roughly 120 employees and four facilities serving construction and industrial customers in the Detroit and Grand Rapids, Michigan, Cleveland, Ohio, and Pittsburgh, Pennsylvania metropolitan areas.
Herc Rentals now has 14 physical locations in these coverage areas after the acquisition of Cloverdale, all of which provide general and specialty equipment rental options as well as related services. HRI believed that the combined staff and resources of the two firms will position Herc Rentals as a leading equipment rental partner in the Great Lakes region and surrounding regions, serving a diversified range of construction, industrial, and government customers.
Furthermore, Cloverdale's expansion complements HRI’s long-term objective to attain more density and scale in chosen urban regions across North America to better accommodate both our local and national clients, with three locations in important metropolitan cities. Additionally, in the first year, HRI expects the acquisition to be profitable.
HRI is well equipped to pursue development through a range of strategies, including investments in important fleet categories, greenfield branches, and acquired operations while remaining committed to a strong financial foundation. The acquisition agreement is conditional to usual closing conditions and regulatory authorizations. It is anticipated that the deal will be finalized in the Q2 of 2022.