Sunbelt expects to accelerate expansion

Sunbelt Rentals, Fort Mill, S.C., opened 29 greenfield locations in North America in fiscal 2021 and completed five bolt-on acquisitions in the fourth quarter leading into what the company is calling a Sunbelt 3.0 strategic growth plan.

“This has been a year of outperformance throughout all of our geographies and equally a year of positioning for future sustainable growth and success,” Brendan Horgan, CEO, Ashtead Group, parent company of Sunbelt Rentals US, told analysts in a conference call in mid-June.

“Our model has demonstrated for years the ability to thrive during good times and we can now see clearly that during more challenging periods in the economic cycle, rental, and in particular, our unique approach between general tool specialty and clustered markets, is designed to deliver a reliable alternative to ownership to an ever-broadening lineup of end market,” Horgan said.

Horgan’s comments followed the release results of the company’s fourth quarter and full-year fiscal 2021 ended April 30, 2021. Total revenue for Sunbelt Rentals US was $1.38 billion during the fiscal fourth quarter, compared to $1.21 billion for the same period last year. Total revenue for the full year was $5.42 billion, a 1 percent decrease compared to $5.49 billion the year before. Rental revenue was down 2 percent for the year.

In the UK, Sunbelt Rentals reported total revenue of £191.0 million (US$268.9 million) during the fiscal fourth quarter, up 83 percent compared to £104.1 million (US$146.7 million) the year before. Total revenue for the full year was £635.1 million (US$894.4 million), up 35 percent compared to £469.2 million (US$660.8 million) the year before.

In Canada, Sunbelt Rentals’ total revenue was C$144.3 million (US$118.4 million) during the fiscal fourth quarter, compared to C$99.9 million (US$82.0 million) the year before. During the full year, total revenue was C$500.9 million (US$411.3 million), compared to C$420.7 million (US$345.5 million) the year before.

Ashtead Group reported revenue for the fiscal fourth quarter of £1.27 billion (US$1.79 billion), up 23 percent compared to £1.13 billion (US$1.60 billion). Revenue for the full year was £5.03 billion (US$7.08 billion), compared to £5.05 billion (US$7.11 billion).

“We returned to growth in the fourth quarter with rental revenue up 15 percent over last year and up 14 percent when compared with the fourth quarter of 2018/19, both at constant exchange rates. This completes a year of market outperformance across the business with full year rental revenue up 1 percent at constant exchange rates. I am extraordinarily proud of, and grateful to, all our dedicated team members who have made this possible, delivering for all our stakeholders, all while keeping our leading value of safety at the forefront of what we do,” Horgan said.

Acquisitions during the fourth quarter 2021 included the following:

• On Feb. 3, 2021, Sunbelt US acquired the business and assets of DC Rentals — a general tool business in Connecticut.

• On March 26, 2021, Sunbelt US acquired the business and assets of Harford Rental Service — a general tool business in Maryland.

• On April 16, 2021, Sunbelt US acquired the business and assets of American Aerial Equipment — a general tool business in Massachusetts.

• On April 23, 2021, Sunbelt US acquired the business and assets of Ross Aerial Equipment — a general tool business in Arizona.

• On April 28, 2021, Sunbelt US acquired the business and assets of Tomcon Industries — a general tool business in New York.

In addition, Horgan said the company already opened another 12 greenfield locations and added four locations in new bolt-on acquisitions in the first six weeks of the company’s fiscal 2022 that started on May 1, 2021.

As part of the Sunbelt 3.0, Horgan also said the company expects to add about 300 locations over the next three years, including greenfields and acquisitions, with a target of having 1,234 total locations by the end of April 2024.