Sumitomo Corporation Group acquires remaining shares of US construction rental company

Monday, 27 February 2017 01:08:18 (GMT+3)   |   San Diego
       

Japanese steelmaker Sumitomo’s parent corporation announced today that it has acquired the remaining 20 percent interest in Sunstate Equipment Co., LLC through its subsidiary SMS International Corporation, making Sunstate a wholly owned company of Sumitomo Corporation Group.
 
Sunstate is the 7th largest equipment rental company in the United States and the 24th largest in the world, with over 60 branches in 9 states, and employing nearly 1,600 individuals.
 
In a statement, the company said “The United States is currently experiencing rapidly deteriorating infrastructure systems, for which repairs are estimated to exceed billions of dollars over the next 10 years. This in turn provides anticipated growth for the construction equipment rental industry, which already exceeds 30 billion dollars and is expected to continue to grow due to the demand for infrastructure projects.”
 
Sumitomo became engaged with Sunstate in 2009 with its first investment in their Convertible Preferred Interests.  As a minority shareholder, Sumitomo was focused on strengthening a partnership with Sunstate's management while gaining an understanding of the industry. This led to Sumitomo acquiring the controlling interest of Sunstate in 2012 by increasing its ownership of Common Membership Interest to 80 percent. Following the acquisition, Sunstate expanded its business and tripled sales from 2009.
 
Sumitomo said it looks forward to contributing to the further expansion of Sunstate and the US economy by involvement in infrastructure construction projects and by creating employment within this field.


Tags: US North America M&A 

Similar articles

Biden: US Steel “must remain domestically owned and operated”

15 Mar | Steel News

Nippon Steel fails to address concerns of workers at US Steel

11 Mar | Steel News

USW receives Biden’s support on opposition to sale of US Steel

06 Feb | Steel News

Biden: Acquisition of US Steel by Nippon Steel needs to be investigated

28 Dec | Steel News

United Steelworkers union denounces US Steel-Nippon acquisition

18 Dec | Steel News

Nucor scrap subsidiary acquires Ohio-based Garden Street Iron & Metal

16 Oct | Steel News

Olympic Steel acquires Central Tube & Bar

02 Oct | Steel News

More bids reported for US Steel acquisition

22 Sep | Steel News

Tenaris acquires pipe processing plant in US

08 Sep | Steel News

US Steel signs confidentiality agreements with numerous bidders

30 Aug | Steel News