BigRentz Inc., the nation’s largest online website to rent construction equipment, is forging ahead to almost double annual revenue to more than $60 million following two acquisitions and an investment led by a Japanese conglomerate.
The Irvine-based firm on April 1 said that it closed $15 million in funding from private investors, including new lead investor, Itochu Corp. (OTC: ITOCF), a Tokyo-based Global Fortune 500 company with assets totaling over $90 billion. It is Japan’s third-largest trading company by assets.
“BigRentz has been on our radar for some time and believe it is positioned to make an impact in other rental markets throughout in the world,” Masa Yoshikawa, manager of Itochu’s construction machinery section, said in a statement.
BigRentz is also considering becoming a publicly traded company and is interviewing investment bankers and preparing for audits, Chief Executive Scott Cannon told the Business Journal.
If BigRentz does an initial public offering, Itochu will own more than 20%, he said.
“While we are cognizant of the current health and economic landscape, we have ambitious growth plans and believe Itochu is the ideal investment partner to help execute our 10-year strategy,” Cannon said.
Two Acquisitions
BigRentz on March 31 acquired Lizzy Lift, an international provider of construction equipment rental services. The Elmhurst, Ill.-based firm has been co-owned by sisters Jennifer DuBose-Lombard and Elizabeth Faruzzi for more than 20 years.
“They are incredibly well known in our space,” Cannon said. “They have an absolutely stellar reputation.”
The investment from Itochu also helped BigRentz acquire Atlanta-based Equipment Management Group, a national site services provider. Terms of the acquisitions weren’t disclosed.
The two acquisitions, plus internal growth, should double BigRentz’s revenue from $35 million in 2019 to about $63 million this year, Cannon said. The two acquisitions will boost BigRentz’s employee base from 75 to about 105.
Coronavirus Effect
Cannon lowered his original revenue forecast from $70 million because of the coronavirus pandemic, which is forcing his employees to work from their homes.
“The biggest impact to our business is our customers are cutting back on capital investments due to the uncertain financial environment created by shutting down various elements of the economy due to COVID-19,” he said.
The company describes itself as similar to how Expedia sells hotel rooms and airline tickets. Cannon said it’s basically the sales and marketing arm of 2,500 small rental companies that control about 8,500 yards with equipment valued at $50 billion.
It rents anything from boom lifts to bulldozers to an 18-ton carry deck crane. Its website arranged 36,000 rentals last year. That amount should almost triple with the two acquisitions and its own growth.
“We are positioned to handle over 100,000 annual rentals without adding additional costs,” Cannon said.
