M&A activity snapshot
Equipment rental is a large, growing market with a few national consolidators and thousands of small operators. ARA projects U.S. construction, industrial and general tool rental revenue will grow 3.4 percent in 2026 to $83.5 billion. The 100 largest rental companies posted $46.2 billion in 2025 rental volume, up 6.1 percent.
The top is concentrated and the base is not. Sunbelt estimates the three largest North American players hold approximately 31% of the market. It also estimates that over 40% of the U.S. market is held by companies with five or fewer locations. That long tail is the acquisition pool.
The defining recent deal was Herc's purchase of H&E. Herc closed it in June 2025 for a total purchase price of $4.8 billion. It also paid $1.4 billion to extinguish H&E debt. Herc outbid United Rentals, which had signed first and later received a break-up fee after the merger agreement was terminated.
Under 2022 NAICS, renting heavy equipment without operators is code 532412, Construction, Mining, and Forestry Machinery and Equipment Rental and Leasing. Construction equipment dealers fall under 423810, Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers. Crane rental with operators is classified separately, in 238990.
Who is buying
National rental consolidators. United Rentals is the largest, with an approximate 15 percent North American market share and 1,768 rental locations. It bought Yak, now in its specialty segment, in March 2024. Sunbelt, at an estimated 11% share, is the steadiest bolt-on buyer.
Sunbelt completed thirteen acquisitions in the fiscal year ended April 30, 2026, for aggregate consideration of $224 million. Seven were general tool businesses and six were specialty. Between fiscal 2021 and 2024, 170 of its new North American locations came through bolt-on acquisitions.
Herc now has an estimated 4% market share and 602 locations. Before H&E, it bought Otay, a four-location rental company, for approximately $273 million in 2024.
A challenger that builds rather than buys. EquipmentShare, which filed to go public in January 2026, says 98% of its rental revenue has come from organic site growth. It competes with acquirers for customers and staff, not for targets.
Private equity. Financial sponsors back family-owned specialty fleets. Carousel Capital recapitalized CraneWorks / RentalWorks, a family-owned crane and specialty rental company, in August 2025.
OEMs and dealer groups. Dealer ownership is narrow. Caterpillar has 41 dealers located in the United States. Deere sells construction and forestry lines through approximately 450 U.S. and Canadian dealer locations. In September 2026, Caterpillar agreed to buy Fabick Cat, which operates 37 locations.
What buyers look for
Dollar utilization. This is rental revenue divided by the average original equipment cost (OEC) of the fleet. Herc reported 39.3% in Q2 2026, up from 38.3%. Mix matters: Sunbelt's specialty segment ran 75%, against 47% in general tool.
Time utilization. United Rentals defines it as time on rent divided by time the asset has been owned during the year. A buyer reads it alongside rates. High time utilization at weak rates signals underpricing.
Fleet age. An old fleet means the buyer funds replacements soon after closing. Herc's fleet averaged approximately 45 months and Sunbelt's approximately 53 months. United Rentals pointed to H&E's average age of under 41 months as part of the deal case.
Customer relationships, not just iron. Herc booked a customer relationship intangible asset of $1.19 billion on H&E. In Sunbelt's fiscal 2026 bolt-ons, goodwill of $122 million exceeded the $89 million of rental equipment acquired. Buyers pay for accounts and density.
What makes a strong company
A rental business that commands a premium typically has:
- Dollar utilization tracked monthly using the ARA definition, with a clear trend.
- A fleet younger than peers, with service records and OEC for each serialized unit.
- A specialty or higher-return mix, not only commodity general rental.
- Density in a few metros rather than scattered single branches.
- A customer list with no single account large enough to sink a year.
- For dealers: an OEM agreement in good standing and a manufacturer open to the transfer.
Valuation and deal structure
Public deals are the most reliable pricing data available. United Rentals agreed to pay 6.9x trailing adjusted EBITDA for H&E, or 5.8x including targeted cost synergies and tax attributes. Herc's winning offer was 7.4x estimated 2025 adjusted EBITDA including tax benefits. It fell to 6.3x including run-rate cost synergies.
No reputable source publishes private EBITDA multiples for small rental companies. The H&E figures are a large-deal proxy. Small fleets with weaker utilization should not expect them.
Bolt-ons are small checks. By Axia arithmetic, Sunbelt's $224 million across thirteen acquisitions averages roughly $17 million per deal. Herc's Otay deal priced four locations at approximately $273 million.
Earnouts are standard. Sunbelt's contingent consideration is based on the post-acquisition performance of the acquired businesses and is expected to be paid out over the next seven years. Public buyers also pay in stock: H&E holders received $78.75 in cash and 0.1287 Herc shares per share. To see where your own numbers sit, use the valuation tool.
Outlook
Expect steady bolt-on buying through 2027. ARA projects rental revenue growth of 4.4 percent in 2027 and 5.1 percent in 2028. Sunbelt puts rental at around 55% to 60% of the North American market, with room to rise.
The large deals now favor big projects. Herc credits mega project activity and a higher mix of specialty equipment for its growth. Owners with specialty fleets and national-account customers should see the most buyer interest.
On the dealer side, the Fabick deal shows manufacturers will step in directly. Dealer owners planning a sale should involve their OEM early.
Own an equipment rental or dealer business and want a sense of value before talking to anyone? Run the valuation tool. See also: how buyers build an M&A target list, and the parent Automotive & Equipment M&A overview.