Ashtead to make US listing switch

Ashtead Group said today that a stock listing in the US “is in the best interests of the business and its stakeholders”. It will seek shareholder approval with the goal of completing the US listing within 12 to 18 months. It said it would retain a UK listing in the international companies segment.

As part of the move the group will rebrand as Sunbelt Rentals.

The move to a US listing has been widely anticipated. Ashtead owns Sunbelt Rentals in the US and the UK, but the US generates the vast majority of its revenues and 98% of its profits in the 2024 financial year. Its executive management team is based in the US and it is “the core growth market for the business.”

The company said a US listing would benefit it in the following ways:

• Alignment of listing location with the majority of the its business activity, leadership team and employees;
• Increased exposure to US investors;
• Enhanced liquidity in its shares given access to US capital markets;
• Higher profile through a group rebranding as Sunbelt Rentals;
• Simplified share ownership for employees and expanded access to the recruitment and retention of top US talent;
• Well positioned for inclusion in leading US equity indices.

Ashtead said it would discuss the proposal with its shareholders over the coming weeks, before putting forward a formal resolution for approval at a general meeting; “The Board expects that the necessary steps would be implemented over the next 12-18 months.”

The move will mark a big change for the business, which was founded as Ashtead Plant Hire near London in 1947. Ashtead Group PLC was created in 1984 to acquire the business, which at that time was a five location company with revenues of around €1 million. It listed on the London stock exchange in 1986.

It has grown to become the second largest equipment rental business in the world - with United Rentals as the largest - with operations in the USA, Canada and the UK. It also operates some specialist rental businesses in mainland Europe.