Sumitomo announced that through a wholly owned subsidiary, SMS International, it has acquired a controlling interest in Sunstate Equipment, a construction equipment rental company headquartered in Phoenix, AZ. Sunstate has equipment rental locations in California, Nevada, Utah, Colorado, Arizona, New Mexico, Oklahoma, Texas and Tennessee.

Sumitomo said it made the original investment in Sunstate in 2009 at the time when the U.S. construction equipment rental industry was undergoing a severe downturn that started after the financial crisis, because Sumitomo was convinced that industry was poised for a the long-term growth. Since the investment, Sumitomo has focused on strengthening the partnership with Sunstate’s management team while gaining deeper understanding of the industry.

Sumitomo said it believes that now is the opportune time to further grow Sunstate’s business because the U.S. equipment rental industry is still fragmented, but is expected to grow due to continued increase in the rental penetration. It is with this belief that Sumitomo made the decision to acquire the controlling interest of Sunstate.