KBS - Equipment-as-a-Service - Market Insight

M&A INTEREST FROM ACQUIRERS & INVESTMENT ROUTES

PE firms have significantly increased their focus on EaaS. Roughly 25% of European equipment rental transactions since 2018 involved a financial sponsor (private equity or infrastructure fund).

BUY-AND-BUILD STRATEGIES Many PE firms view the EaaS industry as an opportunity for buy-and-build consolidation. The sector’s fragmentation allows a sponsor to acquire a platform company and then roll up smaller add-ons to drive growth and multiple expansion. For example, Allied Industrial Partners has built out CES Power (a specialist rental platform for event power solutions) through bolt-on acquisitions such as Base Craft and Fourth Generation. Likewise, Kinderhook Industries has been expanding its portable storage rental portfolio through acquisitions, e.g. The Eagle Leasing Company.

KEY ACQUIRERS AND INVESTORS Major players in this sector include