29.08.2018

Hitachi takes stake in Acme

Japanese equipment manufacturer Hitachi Construction Machinery has purchased a 33.3 percent stake in US wholesale aerial lift rental company Acme.

As part of the agreement, Acme has restructured its balance sheet to significantly reduce its debt and to provide liquidity to fund its future fleet growth and expansion plans. It will add Hitachi earth moving equipment to its fleet while Hitachi will support Acme’s expansion by promoting its services through the Hitachi North American dealer network.

Acme will also create regional support centres covering all the major market areas in North America, in order to offer its customers a more localised service.

Acme chief executive Woody Weld said: “Acme’s rental customer base has been increasingly requesting both wheel loaders and excavators on a re-rental basis. This new partnership with Hitachi Construction Machinery will allow every retail construction equipment rental company in the North American marketplace to have access to a full range of well proven and highly regarded Hitachi earth moving products.”

Hitachi executive vice president for international business Yasushi Ochiai added: “Acme brings to the venture unique expertise in re-rental of various equipment product classes. Joining forces with Acme furthers our strategy to strengthen our value chain business.”

Arizona based Acme was established in 1997 and runs a large fleet of boom lifts of 80ft and over along with telehandlers and large portable air compressors.

Vertikal Comment

An interesting move on the part of Hitachi, it is part of the company’s ‘Connect Together 2019’ mid-term management plan. The move will enable the company to push more Hitachi equipment into its North American dealer network, topping up the local fleets when short term demand is high, helping them to increase their share of the local rental market. With a greater share the more Hitachi equipment they will buy and also sell.

It is gives Acme a major financial boost and de-levers its balance sheet and dramatically reduces funding costs just as interest rates look like climbing. If all goes well expect Hitachi to increase its stake in the coming years, possibly providing a good exit route for Woody Weld and other shareholders.