Alta Equipment Group Inc. (ALTG): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Alta Equipment Group Inc. managed to generate revenues surpassing $1.4 billion just within the first nine months of 2024? This company operates as a prominent force in the material handling and construction equipment markets, consistently influencing the sector through its expansive reach and diverse service offerings. Their growth trajectory, marked by strategic acquisitions and a keen focus on operational efficiency, presents a compelling story of adaptation and success in a demanding industry. Are you curious to uncover the historical milestones, ownership details, core mission, and the precise mechanisms driving ALTG's revenue streams?

Alta Equipment Group Inc. (ALTG) History

Alta Equipment Group Inc.'s Founding Timeline

Understanding a company's roots provides crucial context for its present strategy and future potential. Alta Equipment Group started its journey decades ago.

Year established

1984

Original location

Michigan, USA

Founding team members

The company was founded by Ryan Greenawalt's family. Ryan Greenawalt currently serves as the Chairman and CEO.

Initial capital/funding

Started as a private family business; specific initial funding details are typical of private entities and not publicly disclosed. Growth was initially organic and funded through operations before seeking external capital for major expansions.

Alta Equipment Group Inc.'s Evolution Milestones

From a single dealership to a major player, key strategic moves defined Alta's growth trajectory.

Alta Equipment Group Inc.'s Transformative Moments

Transition to Public Company (2020)

Going public via the SPAC merger provided Alta with approximately $300 million in gross proceeds. This infusion was pivotal, enabling the shift from organic growth to a rapid M&A-driven expansion strategy, fundamentally changing the company's scale and market reach.

Diversification into Construction Equipment

While initially focused heavily on material handling (forklifts), strategic acquisitions significantly bolstered its construction equipment segment. This diversification created a more balanced revenue stream, reducing dependency on a single market and capturing broader infrastructure spending trends.

Focus on High-Margin Parts and Service

Recognizing the recurring revenue potential, management emphasized growing the parts and service business alongside equipment sales. This segment consistently delivers higher margins, contributing significantly to profitability and creating stickier customer relationships. You can find more details by Breaking Down Alta Equipment Group Inc. (ALTG) Financial Health: Key Insights for Investors.

Alta Equipment Group Inc. (ALTG) Ownership Structure

Alta Equipment Group Inc. operates as a publicly traded company, meaning its ownership is distributed among various institutional investors, company insiders, and the general public through shares traded on the open market. This structure influences its governance and strategic direction, reflecting a broad base of stakeholder interests.

Alta Equipment Group Inc.'s Current Status

As of the end of 2024, Alta Equipment Group Inc. is a publicly listed entity. Its common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol ALTG.

Alta Equipment Group Inc.'s Ownership Breakdown

Understanding the distribution of ownership provides insight into the company's control dynamics. For a deeper dive into its financial stability, consider Breaking Down Alta Equipment Group Inc. (ALTG) Financial Health: Key Insights for Investors. Based on data available towards the end of the 2024 fiscal year, the approximate ownership breakdown is as follows:

Alta Equipment Group Inc.'s Leadership

The strategic direction and day-to-day operations of the company are guided by its executive leadership team and board of directors. Key figures leading the company as of late 2024 include:

• Ryan Greenawalt: Chief Executive Officer (CEO) and Chairman of the Board
• Anthony J. Colucci: Chief Financial Officer (CFO)
• Craig Brubaker: Chief Operating Officer (COO)

This team brings extensive industry experience to navigate the complexities of the equipment dealership market, focusing on growth through acquisitions and organic expansion across its material handling and construction equipment segments.

Alta Equipment Group Inc. (ALTG) Mission and Values

Alta Equipment Group Inc. articulates its purpose through a defined mission and core values, guiding its operations and strategic direction in the material handling and construction equipment sectors. These principles shape the company's culture and its approach to serving customers and stakeholders.

Alta Equipment Group Inc.'s Core Purpose

The company's direction is anchored in its foundational statements and guiding principles.

Official mission statement

While a single, formally stated mission sentence might vary in public communication, the company's operational focus centers on being an industry leader by providing comprehensive equipment and service solutions. They emphasize delivering exceptional value and support to ensure customer success and operational uptime. You can explore the Mission Statement, Vision, & Core Values of Alta Equipment Group Inc. (ALTG).

Vision statement

Alta Equipment Group aims to be the premier integrated solutions provider in its markets. This involves expanding its geographic footprint, enhancing service capabilities, and leveraging technology to meet evolving customer needs effectively, driving sustainable growth and strong financial performance.

Company slogan

The company often operates under the guiding slogan: Uptime Delivered. This reflects its commitment to minimizing customer downtime through reliable equipment and responsive service support.

Alta Equipment Group Inc. (ALTG) How It Works

Alta Equipment Group operates as a premier integrated equipment dealership platform, providing sales, service, parts, and rental solutions for material handling and construction equipment across its extensive network. The company focuses on delivering lifecycle support to a diverse customer base, driving value through both equipment distribution and high-margin aftermarket services.

Alta Equipment Group Inc.'s Product/Service Portfolio

Alta Equipment Group Inc.'s Operational Framework

Alta operates through a decentralized branch network, with over 85 locations strategically positioned across the Midwest, Northeast, Florida, and Canada as of late 2024. This extensive footprint allows for localized customer support and rapid service response. The company employs a 'cradle-to-grave' approach, aiming to capture revenue throughout the equipment's lifecycle, from initial sale or rental through ongoing parts and service needs until eventual replacement. Acquisitions are a key operational component, integrating new dealerships and service capabilities to expand geographic reach and market density. Technology plays an increasing role, with investments in telematics for fleet management and digital platforms to streamline parts ordering and service requests.

Alta Equipment Group Inc.'s Strategic Advantages

Alta's success hinges on several core strengths evident through 2024:

• Premier OEM Partnerships: Strong relationships with industry leaders like Hyster-Yale and Volvo CE provide access to high-demand equipment and OEM support.
• Extensive Service Network: The large number of locations and skilled technicians creates a significant barrier to entry and enables high-margin aftermarket revenue streams, which typically accounted for 30-35% of total revenue.
• Diversified Revenue Streams: Income is generated from new and used equipment sales (historically around 45-50% of revenue), rentals, parts, and service, providing resilience against market fluctuations in any single area. Understanding the company's core principles can offer further insight; explore the Mission Statement, Vision, & Core Values of Alta Equipment Group Inc. (ALTG).
• Growing Rental Fleet: Significant investment in the rental fleet caters to increasing customer demand for flexible equipment solutions and generates recurring revenue.
• Proven Acquisition Strategy: A demonstrated ability to identify, acquire, and successfully integrate complementary businesses fuels geographic expansion and service diversification.

Alta Equipment Group Inc. (ALTG) How It Makes Money

Alta Equipment Group generates revenue primarily through the sale of new and used material handling and construction equipment, complemented by high-margin parts sales, maintenance services, and equipment rentals across its dealership network.

Alta Equipment Group Inc.'s Revenue Breakdown

Alta Equipment Group Inc.'s Business Economics

The company operates in a cyclical industry, heavily influenced by construction and industrial activity levels. A key economic driver is the balance between lower-margin equipment sales and higher-margin, more stable aftermarket revenue streams like parts and service, which contribute significantly to overall profitability. Rental operations require careful fleet management to optimize utilization and return on invested capital. Gross profit margins hovered around 27.7% through the first nine months of 2024. Acquisitions are central to expanding geographic reach and diversifying revenue streams, impacting integration costs but driving scale economies. The company's ability to cross-sell services across its customer base is fundamental to its economic model. You can learn more about the Mission Statement, Vision, & Core Values of Alta Equipment Group Inc. (ALTG).

Alta Equipment Group Inc.'s Financial Performance

Alta Equipment Group has demonstrated robust top-line growth, driven by both organic expansion and strategic acquisitions. For the nine months ending September 30, 2024, total revenues reached $1.72 billion, showcasing continued expansion. Key indicators of financial health include:

• Gross Profit: Reached $476.6 million for the first nine months of 2024.
• Adjusted EBITDA: Stood at $217.7 million for the same period, reflecting operational earnings capacity before interest, taxes, depreciation, and amortization.
• Acquisition Impact: Financial performance reflects the ongoing integration of acquired businesses, contributing to revenue increases but also impacting short-term expenses and leverage ratios.

Alta Equipment Group Inc. (ALTG) Market Position & Future Outlook

Alta Equipment Group continues to solidify its position as a leading regional equipment dealership and rental provider through aggressive acquisition strategies and organic growth, particularly within its Material Handling and Construction Equipment segments. The company's future outlook hinges on integrating recent acquisitions effectively and capitalizing on infrastructure spending tailwinds, aiming for sustained revenue growth above the **$1.8 billion** mark achieved around fiscal year 2024.

Competitive Landscape

The North American equipment dealership and rental market remains highly fragmented, though dominated by a few large players. Alta Equipment Group competes regionally against national giants and other large regional dealerships.

Opportunities & Challenges

Navigating the economic landscape presents both pathways for growth and potential hurdles for the company heading into 2025.

Industry Position

Alta Equipment Group has established itself as a significant player through rapid expansion, primarily fueled by acquisitions, positioning it among the largest dealers for key OEMs like Hyster-Yale and Volvo CE in North America. Its strategy focuses on building density in existing regions while entering new, attractive markets. Diversification across Material Handling and Construction Equipment provides some resilience against sector-specific downturns.

• The company emphasizes growing its parts and service business, which represented a substantial portion of gross profit in 2024, offering higher margins and recurring revenue streams.
• Geographic expansion and successful integration of acquired companies remain central to its growth narrative and align with its overall strategic objectives, detailed further in the Mission Statement, Vision, & Core Values of Alta Equipment Group Inc. (ALTG).
• Financial performance in 2024 demonstrated continued top-line growth, although profitability metrics faced pressure from interest expenses and integration costs, a common challenge for companies pursuing aggressive M&A strategies.

Overall, ALTG is positioned as a growth-oriented consolidator within the equipment dealership space, leveraging strong OEM relationships and an expanding service network.