There is movement in the construction tool and equipment rental market in Eastern Canada.
After the three acquisitions made by the firm Lou-Tec over the past year, it is the turn of its competitor, Simplex Location d’outils, to acquire the firm Skytec Rentals, based in Hamilton, Ontario.
This company specializes in the rental of lifting equipment and aerial work platforms for construction sites and industrial sites.
In business since 2012, Skytec has around forty employees. It is described as “expanding” by Simplex executives, who plan to make it the basis of their ambitions to expand into the huge southern Ontario market.
In the opinion of Simplex President, Euclid Véronneau, “Skytec is a very well managed company with which we already have common values ​​and a common business vision. This transaction is part of our development plan focused, among other things, on acquisitions.”
Thus, according to Mr. Véronneau, the acquisition of Skytec “will help strengthen our leadership position in the tool and equipment rental market, accelerate our growth in Ontario and provide a superior product offering.”
Simplex management says it “plans to capitalize on the strong growth potential of the construction sector and many other industries in southern Ontario, as well as in the Greater Toronto Area, one of the largest in North America”.
With the acquisition of Skytec, Simplex signals that it wants to “further establish itself in the area of ​​major events and cinema” – two sectors in which Simplex says it “already is very active in Quebec.” »
Simplex becomes 100% owner of Skytec Rentals, but intends to keep all staff and the brand there “due to the notoriety acquired in its market”.
At Skytec, CEO Frank Tam says he “believes that this transaction will benefit not only [both] organizations, but also companies looking for specialist equipment” for construction sites and industrial sites.
A century-old company founded in 1907, Simplex Tool Rentals employs 550 people in its network of 35 branches in Quebec and Ontario.
Simplex acquired Center de location Pyramide in October 2021.
In the site tool and equipment rental market, it should be noted that Simplex’s main competitor, Lou-Tec, has stood out for its three acquisitions made since it joined its shareholding, in September 2021, from a quartet of investors led by the Sagard Private Equity (PE) fund, which is affiliated with the Power Corporation conglomerate.
The three other participants in this quartet are the Montreal firm Partners Walter Capital and the state-owned company Investissement Québec, as well as the BDC Capital division of the Business Development Bank of Canada.
A year ago, in June 2022, Lou-Tec bought Accès Location. This was followed by the purchase of Yep Location in Estrie in October 2022, then MKS Equipment in Saguenay–Lac-Saint-Jean in May 2023.