About Alta Equipment Group

Alta Equipment Group Inc. owns and operates one of the largest integrated equipment dealership platform in the United States (U.S.). The company has a presence in Canada. Through its branch network, the company sells, rents, and provides parts and service support for several categories of specialized equipment, including lift trucks, heavy and compact earthmoving equipment, environmental processing equipment, and other material handling and construction equipment. The company engages in five principal business activities in these equipment categories, such as new equipment sales; used equipment sales; parts sales; repair and maintenance services; and equipment rentals. Within its territories, the company is the exclusive distributor of new equipment and replacement parts on behalf of its Original Equipment Manufacturer (OEM) partners. The company and its regional subsidiaries enjoy long-standing relationships with leading material handling and construction equipment OEMs, including Hyster-Yale, Volvo, JCB and Kubota, among many others, as well as master dealer rights throughout North America for environmental processing equipment with Doppstadt and Backers, among others. The company is consistently recognized by OEMs as a top dealership partner and has been identified as a nationally recognized Hyster-Yale dealer and multi-year recipient of the Volvo Dealer of the Year award. More recently, the company entered into a dealer agreement with Nikola Corporation to become the authorized dealer to sell and service Nikola medium and long-haul class 8 electric vehicle trucks in New York, New Jersey, eastern Pennsylvania and New England markets. The company is committed to providing its customers with a best-in-class equipment dealership experience. The company’s customers are principally focused on equipment reliability and uptime, and its teams of skilled technicians and commitment to service are key to establishing and maintaining long-term customer relationships, representing a critical competitive advantage. Parts and service are also the company’s most predictable and profitable businesses, with the dealership model structured to drive aftermarket parts and service revenue. Products and Services New Equipment Sales: The company sells new material handling, construction and environmental processing equipment and are a leading dealer for nationally recognized OEMs. The company’s new equipment sales generate customers for its parts sales and service operations, which grow with an expanding equipment field population in its territories. Additionally, the company provides warehouse design and build services, automated equipment installation and system integration solutions within its Material Handling segment. Used Equipment Sales: The company sells used equipment, primarily from equipment trade-ins from its new and returning customers. Used equipment sales, like new equipment sales, generate parts and services business for the company. Parts Sales: The company is the exclusive distributor of OEM parts in substantially all of its territories. The company’s in-house parts inventory is extensive, enabling it to provide timely service support to its customers. Service Support: The company provides maintenance and repair services for its customers’ equipment and maintain its own rental fleet. In addition to repair and maintenance on an as needed or scheduled basis, the company provides recurring maintenance services and warranty repairs for its customers. Equipment Rentals: The company rents material handling and construction equipment to its customers. The company views its rental fleet as an important component of its one-stop-shop model, and customers rely on its rental equipment to integrate into their business over the long term when flexing up their fleet capacity for a project or when customer-owned equipment is being serviced. The company’s rental business also supports its rent-to-sell strategy, in which it sells equipment from its rental fleet to customers who prefer to purchase lightly used equipment. As with new and used equipment sales, the rent-to-sell solution generates parts and service revenue as equipment is sold into the company’s territories. Business Strategy The key elements of the company’s strategy are to align with world-class original equipment manufacturers by securing dealership agreements for exclusive territories; grow the field population of equipment in its territories and leverage that equipment to grow parts and service revenue; recruit skilled technicians to expand the parts and service operations; pursue strategic acquisitions; and pursue synergistic verticals. Customers The company’s customer end markets include diversified manufacturing, food and beverage, wholesale/retail, distribution, construction, automotive, municipal/government, and medical. The company’s customers vary from small, single machine owners to large construction contractors and leading multi-national commercial companies. Floorplan Financing New equipment inventory is primarily financed with OEM floorplan facilities with an initial promotional period that is either subsidized or interest-free. OEMs provide this financing to enable dealers to carry equipment in anticipation of customer orders and to increase market share. In many cases, the company sells the equipment financed by its floorplan facilities before the expiration of the promotional interest period. Sales and Marketing The company has organized its sales forces to be aligned around specific equipment types. Specialized sales forces for types of equipment allows the company’s sales teams to develop expertise in certain end markets which allow them to effectively meet the demands of its diverse customer base. The company has commission-based compensation programs for its sales forces. The company provides extensive training, including frequent factory and in-house training by OEM representatives regarding the operational features of its equipment to further develop its sales team’s knowledge and experience. This training is essential, as the company’s sales personnel regularly call on customers’ job sites and facilities, often assisting customers in assessing their immediate and ongoing equipment needs. The company utilizes a customized Enterprise Resource Planning (ERP) tool, called e-Emphasys, which includes a sophisticated customer relationship management (CRM) functionality. e-Emphasys was designed specifically for equipment dealerships. The company’s ERP and its CRM enhances its territory management capabilities by increasing the productivity of its sales teams and by tracking equipment service history to advance its customer support goals. While its specialized, well-trained sales force strengthens the company’s customer relationships and fosters customer loyalty, it also promotes its business through marketing and advertising, including industry publications, digital marketing, direct mail campaigns, television and radio, and its website at www.altaequipment.com. Suppliers The company purchased approximately 43% of its new equipment, rental fleet, and replacement parts from four major OEMs (Hyster-Yale, Kubota, JCB and Volvo) during the year ended December 31, 2022. Seasonality The demand for the company’s construction equipment tends to be lower in the winter months. Parts and services activities are less affected by changes in demand caused by seasonality, especially in the company’s material handling segment, and are highly predictable based on historical maintenance and service trends as equipment ages. History The company was founded in 1984. It was formerly known as B. Riley Principal Merger Corp. and changed its name to Alta Equipment Group Inc. in 2020.