5/3/2023 0 Comments Inoted renrtalsIt operates across 106 locations in 30 U.S. It expects to fund the deal with a mix of newly issued debt and existing capacity under its Asset-Based Loan (ABL) facility.Īhern was founded in 1953 and is a family-owned equipment rental firm with about 2,100 employees. United, whose shares rose more than 1% in morning trade, rents out industrial equipment such as vertical lifts, portable generators and mini-excavators. The deal is estimated to close before the end of this year. United, which said it can get more productivity out of Ahern's fleet, expects the deal to generate about $40 million of annualized cost synergies within the first 12 to 18 months of closing. "URI (United Rentals Inc) has a track record of meaningfully improving margins in acquired general rental businesses," said Goldman Sachs analyst Jerry Revich. This is the latest in a string of acquisitions by the Stamford, Connecticut-based company over the past few years. The deal will help United better capitalize on rising demand from manufacturers and construction companies as they ramp up output amid a post-pandemic rebound in industrial activity. ![]() In Connecticut, it runs a depot a few blocks from its headquarters, as well as sites in Beacon Falls, Bloomfield, Bridgeport, Danbury, New Haven and North Stonington.Nov 14 (Reuters) - United Rentals Inc (URI.N) said on Monday it would acquire the assets of smaller rival Ahern Rentals Inc for about $2 billion in cash, as the equipment rental firm looks to expand its U.S. Its network includes 1,343 rental locations across North America. corporations, operates with more than 22,000 employees. ![]() 363 on this year’s Fortune 500 list of the largest U.S. Among other acquisitions, it announced last year that it would pay about $1 billion for General Finance, a provider of mobile storage and modular office space. Since its founding in 1997, United has become a prolific dealmaker. This is a strong outcome for both organizations and our customers.”Īmong related moves, United said it plans to pause its $1.25 billion share repurchase program “through the initial phase of the integration, consistent with its approach during the integrations of similarly sized general rental transactions.”įollowing the announcement of the deal, United shares closed Monday at about $358, up 2.5 percent from their closing total last Friday. “I want to thank our employees for driving the results that make this transaction possible. “I’m proud of what we’ve built at Ahern Rentals over nearly seven decades, and I’m extremely pleased that the combination with United Rentals will take the business forward in this next chapter of growth,” Don Ahern, CEO of the family-owned Ahern Rentals, which was founded in 1953, said in a statement. ![]() The transaction is expected to close before the end of 2022. Additionally, United Rentals expects to realize procurement savings based on the combined spending of both companies.” By the third year after the acquisition, United expects about $60 million of “annual revenue synergies.” United officials added in a news release that they expect the acquisition to produce “approximately $40 million of annualized cost synergies within the first 12 to 18 months of closing, primarily in the areas of corporate overhead, operations and cost of rentals due to efficiencies of scale. We’re leveraging our competencies in larger-scale M&A to augment both our near- and long-term earnings power.” “We view ourselves as the ideal owner of these assets within our network, as customers will benefit from the combination of the two organizations moving forward together. “Our acquisition of Ahern Rentals supports our strategy to deploy capital to grow the core business and drive shareholder value,” United Chief Executive officer Matthew Flannery said in a statement. 30, Ahern Rentals generated $887 million in revenues. Through the acquisition of Las Vegas-headquartered Ahern, United will take over the eighth-largest equipment rental company in North America – one with approximately 2,100 employees and 106 locations in 30 states, serving approximately 44,000 customers in the construction and industrial sectors. STAMFORD – United Rentals, the world’s largest equipment-rental company, announced Monday that it had agreed to acquire for $2 billion another large company in its industry, Ahern Rentals – a deal that builds on its long history of acquisitions.
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