March 20, 2014: United Rentals to Acquire National Pump
With This Acquisition, United Rentals Enters the Pump Rental Segment
STAMFORD, Conn., and BEAUMONT, Texas — United Rentals Inc. announced that it has entered into a definitive asset purchase agreement to acquire National Pump, one of the largest specialty pump rental companies in North America. Under the terms of the agreement, United Rentals will also acquire GulfCo, a two-branch general rental business also based in Texas. The combined purchase price for the assets is approximately $780 million. The board of directors of United Rentals and the partners of National Pump unanimously approved the proposed transaction.
With National Pump, United Rentals enters the pump rental segment, one of the largest and highest growth specialty markets, said the company. United Rentals noted that it has been expanding its specialty businesses, and this acquisition provides another significant product line with attractive margins and returns. In addition, National Pump will offer significant cross-selling opportunities with both United Rentals’ and National Pump’s customer bases.
Michael Kneeland, president and chief executive officer of United Rentals, said, “This transaction is an important step in our strategy to create a company that delivers strong financial returns through the cycle. We have been executing against a plan to strengthen and diversify our business, as demonstrated by our 18 specialty cold starts in 2013 and 13 planned for 2014. National Pump provides an attractive new specialty offering which increases our penetration in growing end markets and advances over time our financial goals of delivering strong free cash flow and improved returns.”
National Pump will become part of the United Rentals Specialty Division under the leadership of Paul McDonnell, senior vice president of specialty rentals.
McDonnell said, “The addition of pumps gives customers another compelling reason to turn to United Rentals for their equipment needs. We have worked with National Pump management to develop a plan to double the size of our new pump business within five years, and we are ready to implement it.”
United Rentals is one of the largest equipment rental companies in the world, with an integrated network of 832 rental locations in 49 states and 10 Canadian provinces. For more information, visit www.unitedrentals.com.
Publication date: 3/17/2014
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