Alta Equipment Group Inc (ALTG)

History and Background

Alta Equipment Group Inc. was founded in 1984. Initially focused on a single crane and rigging supply company, it has grown through acquisitions and organic expansion into a multi-faceted equipment dealership and service provider. It went public in February 2020.

Core Business Areas

• Construction Equipment: Sales, rentals, and service of heavy construction equipment, including excavators, loaders, and bulldozers.
• Industrial Equipment: Sales, rentals, and service of industrial equipment, such as forklifts, warehouse solutions, and material handling equipment.
• Crane Equipment: Sales, rentals, and service of cranes and lifting equipment.
• Rental Equipment: Operates a large fleet of rental equipment, offering short-term and long-term rental options across various industries.

Leadership and Structure

Ryan Greenawalt serves as the Chief Executive Officer. The company operates with a decentralized structure, with regional and product-specific divisions.

Key Offerings

• Construction Equipment (e.g., Volvo Construction Equipment): Distribution, sales, and service of construction equipment from manufacturers like Volvo. Competitors include United Rentals (URI), Herc Rentals (HRI) and Caterpillar (CAT). Market share data for individual product lines is not publicly disclosed, but Alta aims to be a leading dealer in its territories.
• Material Handling Equipment (e.g., Hyster-Yale): Distribution, sales, and service of material handling equipment, including forklifts and warehouse solutions. Competitors include Toyota Material Handling, Crown Equipment, and Raymond Corporation. Market share data for individual product lines is not publicly disclosed, but Alta aims to be a leading dealer in its territories.
• Crane Equipment (e.g., Grove, Manitowoc): Distribution, sales, and service of crane equipment. Market share data for individual product lines is not publicly disclosed, but Alta aims to be a leading dealer in its territories. Competitors include Maxim Crane Works, ALL Erection & Crane Rental.

Industry Overview

The equipment distribution industry is cyclical and influenced by economic conditions, construction activity, and infrastructure spending. Demand is driven by both replacement cycles and new project starts.

Positioning

Alta positions itself as a full-service equipment solutions provider, offering sales, rentals, parts, and service. Its diversified product portfolio and geographic reach provide a competitive advantage. It is positioned as one of the fastest growing dealership platforms.

Total Addressable Market (TAM)

The TAM for construction and industrial equipment in North America is estimated to be hundreds of billions of dollars annually. Alta is positioned to capture a growing share of this market through organic growth and acquisitions. The TAM for equipment rental is also significant, with major growth in the rental space. The industrial equipment market is particularly large, projected to be >$50B in the USA.

Key Competitors

• URI
• HRI
• CAT
• MTW

Competitive Landscape

Alta competes with national rental companies like United Rentals and Herc Rentals, as well as with regional equipment dealerships and manufacturers like Caterpillar. Alta's strengths include its diversified product portfolio and its strong service capabilities. Its acquisitions have strengthened its competitive advantages.

Ring Power Lift Trucks

• Year: 2021
• Acquisition Price (USD millions):
• Strategic Rationale: Expanded its material handling equipment footprint in Florida and increases its dealership coverage.

HILO

• Year: 2022
• Acquisition Price (USD millions):
• Strategic Rationale: Expands footprint in the Midwest and adds to the company's material handling portfolio.

Historical Growth: Alta has grown significantly through acquisitions and organic expansion. Historical growth rates can be found in the company's annual reports and investor presentations.

Future Projections: Future growth projections can be found in analyst reports. Please consult financial news providers for the most up-to-date analyst estimates.

Recent Initiatives: Recent initiatives include acquisitions of complementary businesses, expansion into new geographic markets, and investments in digital technologies.

Alta Equipment Group has experienced significant growth through strategic acquisitions and organic expansion, establishing a strong market presence. Its diversified equipment portfolio and focus on customer service are key strengths. However, it faces risks associated with economic cycles and acquisition integration. The company's focus on geographic expansion and service offerings positions it well for future growth, but managing debt and adapting to market changes will be important.

Data Sources:

• Company Website
• SEC Filings
• Investor Presentations
• Industry Reports
• Analyst Reports

Disclaimers:

This analysis is based on publicly available information and is for informational purposes only. It does not constitute financial advice. Market share estimates are approximate. Financial data requires real-time access to financial data providers.