20.09.2004

HSS announces plans to quit the USA

HSS, one of the UK’s leading hire companies which separated from the Davis group in January of this year in a management buy out, led by managing director Lister Fielding and supported by venture capital company Three I’s, has announced that it intends to sell its rental operations in the USA which trade under the HSS-RentX brand.

In order to assist it with finding a buyer and maximizing the value, the company has retained Hageman, Stansberry & Associates a Texas based consultant to the rental industry that specialises in helping rental owners achieve maximum value when selling out.

HSS RentX has a national network of more than 60 rental depots, covering ten states and rents a variety of small to medium sized equipment including a sizeable fleet of aerial work platforms. Prior to buying RentX in 2001 HSS operated a traditional HSS tool hire business from 16 locations in Florida.

HSS first tried to buy RentX in 1999 when the original owners sold out but were outbid by Meyer International who paid $98.7 million for the then 72 branches. HSS finally took over RentX in July 2001 following the acquisition of Meyer by Saint Gobain of France. The delay seemed worth waiting for as HSS only paid Meyer $47million for the now 74 locations.

Since taking over, HSS has invested heavily in the RentX rental fleet and undertook an aggressive program to upgrade and modernize both fleet and facilities. Weaker locations were closed and more recently RentX has gone through a major reorganization. In spite of all the efforts by HSS RentX has been a significant loss maker for the company and was a factor in the Davis groups decision to sell of the Tool hire group which it had acquired in the early 90’s from SGB and Molem.

“The HSS Board recognizes that U.S. ownership and management of HSS RentX will be beneficial to both the customers and employees of the company and will enable HSS to focus its investment and efforts on its core business in the UK,” said David Kilonback, CEO of HSS RentX.

“This company has excellent upside potential. We have the infrastructure of top quality facilities and equipment in place and, most importantly, we’ve got a great group of employees ready to take this business to the next level,” added Tim Campbell, vice president of Business Development for RentX.

Over the last several months, Hageman, Stansberry & Associates has assisted HSS RentX in their successful divesture of its special events rental division.

Inquiries into the divestiture should be directed to:
Fred Hageman
Partner
Hageman, Stansberry & Associate
3443 Chasen Drive
Cameron Park, CA 95682
(530) 672-1885