What Zeppelin’s expansion could mean for Zeppelin Rental
10 December 2024
Photo: Zeppelin
Every now and again, a deal comes along that has the potential to change the landscape of certain markets.
Zeppelin Group’s move to take on the Caterpillar dealerships in Norway and the Netherlands - acquiring them from Pon Holdings - marks a significant shift in the European construction and equipment rental sectors.
Under the terms, all shares in Pepp Group BV, Pon’s holding company, will be purchased by Zeppelin. This includes sales and service operations for Caterpillar equipment, drive and energy systems, and rental solutions in the two countries.
The transaction, which adds approximately 2,000 employees and €1.1 billion in revenue, represents another key milestone in the long-standing partnership between Caterpillar and Zeppelin, which goes way back to 1954.
What does it mean for Zeppelin Rental?
Zeppelin has not yet confirmed specific plans for its rental business in these markets, but the addition of two significant territories gives Zeppelin Rental a big opportunity to grow.
Zeppelin Rental is already a €740 million revenue business with 177 locations in Germany, Austria, the Czech Republic, Slovakia, Denmark and Sweden.
The addition of Norway and Netherlands extends its reach in the North and West of Europe, and both are mature rental markets. The Netherlands is the seventh largest market in Europe, valued by the ERA at around €1.3 billion, while Norway is the 8th biggest, closer to €0.9 billion. Together they represent around 7% of the total European market.
It means that Zeppelin Rental is now able to address around 36% of Europe’s general equipment rental market.
Indeed, Peter Schrader, Zeppelin Rentals COO and managing director, told the audience at the International Rental Conference (IRC) in China in late November that geographical expansion had been a key part of its growth strategy, alongside a widening of its product range beyond the core earthmoving products represented by Zeppelin’s Cat-dealerships.
By looking back at similar moves made by Zeppelin, we can also infer how this might unfold. In 2019, Zeppelin expanded its distribution and service of Caterpillar equipment into Sweden and Denmark. Following this, Zeppelin Rental has grown its rental activities there and also made a significant acquisition in 2023, purchasing Danish rental company CP ApS.
At the time, Zeppelin group’s then-CEO Peter Gerstmann stated the acquisition was a “big step forward in building a leading rental organization in our Scandinavian markets.”
A similar strategy in the Netherlands and Norway would see it compete in territories dominated by major players like Boels (owner of Cramo), Loxam (owner of Ramirent) and Finland-based Renta Group. Zeppelin Rental already faces Boels and Loxam in Germany, but it would now be competition on a different level in the Nordics and the Netherlands.
What comes next?
The deal remains subject to customary closing conditions, including antitrust approval and consultation procedures with Dutch works councils.
While its full implications will become clearer post-completion, Zeppelin’s history of leveraging Caterpillar partnerships for growth suggests that rental expansion could be on the horizon.
For now, the industry will be watching closely to see if Zeppelin Rental’s next steps echo its strategic moves in Scandinavia.
STAY CONNECTED
Receive the information you need when you need it through our world-leading magazines, newsletters and daily briefings.
CONNECT WITH THE TEAM
