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

SPECIALIST/NICHE PROVIDERS Strategic buyers are actively seeking out niche rental and service specialists to complement their core operations. For example, large generalist rental companies have been acquiring firms in high-growth verticals such as event and entertainment equipment rental (e.g. Sunbelt’s acquisition of UK-based JLL, a film/TV production rental provider) and power/temperature control rental (e.g. Aggreko’s purchase of Crestchic, a UK loadbank testing equipment specialist). These niche acquisitions provide strategic expertise and market share in segments adjacent to their main business. TECHNOLOGY DRIVEN Another type of business that strategic buyers are pursuing is tech-enabled and innovative businesses - targets which have embraced digital platforms or usage-based billing and IoT analytics. Such acquisitions help modernise an acquirer’s operations. Additionally, firms with strong ESG credentials, e.g. electric rental fleets or circular refurbishing programmes, are attractive.

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).