According to United Rentals, the combination of the two companies creates a leading North American equipment rental company with a more attractive customer mix, greater scale, and enhanced growth prospects. The combination is expected to accelerate the combined company’s potential for growth with industrial customers, as well as provide a lower cost base and a less volatile revenue profile that is expected to better position the combined company through all phases of the business cycle. The combined company will continue to be called United Rentals.
“We are pleased to announce the closing of this historic combination. This combination will bring together two highly respected businesses to create a company that will provide our customers with an unparalleled level of fleet availability and customer service. We look forward to immediately begin working with our new colleagues at RSC to leverage the operational and cultural strengths of both companies,” said Michael Kneeland, president and chief executive officer of United Rentals.
In connection with the closing of the transaction, the board of directors approved a new share repurchase program of up to $200 million of the company’s common stock. Under this program, the company may purchase shares of common stock in open market transactions or in privately negotiated transactions. The approved program has no expiration date, but the company expects that the share repurchase program will be completed as market conditions allow within 18 months after the closing of the transaction. The actual number and timing of share repurchases, if any, will be subject to market conditions and applicable Securities and Exchange Commission rules.
United Rentals serves construction and industrial customers, utilities, municipalities, and others with a wide range of equipment including HVAC. For more information, visit www.unitedrentals.com.
Publication date: 05/21/2012