Kansas City, Mo.-based Custom Truck One Source has expanded its reach in the Canadian market and its railroad-related equipment offerings with the $46 million acquisition of HiRail Leasing Group.
The acquisition includes HiRail’s Northshore Rail Contracting and Heavy Repairs companies. It was financed with “cash on hand as well as drawings on Custom Truck’s existing credit facility,” and is subject to fleet and other customary purchase price adjustments, Custom Truck reported.
Based in Ontario, with an additional location in Alberta, HiRail is a rail equipment rental provider, with 600-plus units. Like Custom Truck, it offers railroads and rail contractors light, medium and heavy-duty truck-mounted builds, including hi-rail grapples, rotary dumps, knuckleboom, mechanics and welder trucks, as well as rail gear and attachments. Custom Truck now offers more than 9,000 total units in its rental fleet.
“We are excited to welcome HiRail to the Custom Truck team,” Custom Truck CEO Fred Ross said. “This acquisition allows us to accelerate growth in our core rental business. We will leverage our one-stop shop capabilities in rental, sales, equipment upfitting, and service to meet the critical equipment needs of new and existing customers across Canada. We are impressed with the business HiRail has built in Canada and look forward to working with all of their existing employees.”
“HiRail is delighted by the acquisition and excited for what’s on our horizon now that we’re part of the Custom Truck One Source family,” HiRail Leasing President Shirley Foster said. “This allows us to expand the selection of rental vehicles currently available to our railroad customers across North America and beyond. You can still expect the exceptional level of service we provide, as all HiRail employees will remain with the team. We greatly look forward to this new adventure with everyone.”