ONSITE has announced its $40 million acquisition of specialist commercial power rental and retail sales business, WASP Diesel.
The commercial hire operator says the move significantly increases its critical mass at a national level, positioning the group well to expand on its national solutions offering to clients and capitalise on the consolidation at the top end of the national hire market, estimated to be worth more than $4 billion per annum.
Onsite is an established national rental company providing a significant number of specialist rental products and services in the specific areas of portable buildings, event solutions, access equipment, and generation.
Onsite’s customers include BHP, BMA, Rio Tinto, Thiess, John Holland, Monadelphous and Leighton Contractors.
Since partnering with private equity firm Next Capital in 2007 more than $100m of new capital has been invested in the business which has grown from150 to 270 staff and has increased its geographic footprint into many strategic new locations, such as the Pilbara in WA, to further enhance Onsite’s ability to partner with customers and provide truly national equipment rental solutions.
Onsite Managing Director, Trevor James says the acquisition of WASP Diesel is a key milestone in its Australian expansion strategy and significantly increases the services it is able to offer clients on a national basis. He says the group’s unique approach to partnering with customers foreshadows a major change to the way the hire market is evolving.
James says the company’s customers have responded well to its specialist advisory model which offers tailor-made solutions that ensure significant cost savings, particularly in fuel efficiency.
James claims the Global Financial Crisis has forced many large organisations to focus more heavily on cost control and he believes this will be a key dynamic in the market going forward. Emerging from the GFC he says he is already seeing customers are much savvier in their approach to procurement and the group is well positioned to respond to this change.
Since 2005 the rental market has enjoyed a 12% growth rate in line with mining, engineering and construction activity over the period.
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