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UNITED RENTALS, INC. 8-K Report, Material Agreement (Dec 26, 2006)

Reports
Material Agreements·Other Events·Exhibits & Filings
Filing Date
Filed December 26, 2006
Period End
December 22, 2006
Security
URI
In the record · 2016–202610-K1110-Q328-K170

URI filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 170 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Oct ’17Oct ’17
  2. Leadership change8-K · May ’19May ’19
  3. Material agreement8-K · Aug ’21Aug ’21
  4. Material agreement8-K · Aug ’25Aug ’25

01—Abstract

Summary

Summary of the 8-K filed December 26, 2006. Cited figures are marked; the original filing is the authoritative source.

United Rentals, Inc. (URI) has announced a significant divestiture through its wholly owned subsidiary, United Rentals (North America), Inc. (URNA).

URNA has entered into a Stock Purchase Agreement to sell its entire traffic control business, operating under United Rentals Highway Technologies, Inc. and United Rentals Highway Technologies, L.P., to HTS Acquisition, Inc. This transaction is valued at $85 milliona in cash, subject to customary adjustments for working capital and other factors. The sale is anticipated to conclude in the first quarter of 2007 and is not contingent on regulatory approvals or financing for the buyer. This strategic move indicates United Rentals' focus on streamlining its operations and potentially reallocating capital.

The company will provide certain indemnification for specific pre-existing liabilities and will offer transition services for accounting, IT, and training for a period of three to six months post-closing. Additionally, United Rentals will maintain certain letters of credit to support surety bonds related to the divested business until project completion or the end of 2008. The original equipment cost of the assets being sold is also approximately $85 millionb, aligning with the transaction's cash consideration.

02—Key points

Key Highlights

  1. United Rentals is selling its traffic control business (United Rentals Highway Technologies, Inc. and L.P.) to HTS Acquisition, Inc.
  2. The sale price is $85 million in cash, subject to working capital and other adjustments.
  3. The transaction is expected to close in the first quarter of 2007.
  4. The sale is not dependent on regulatory approvals or buyer financing.
  5. United Rentals will provide indemnification for certain liabilities and transition services for 3-6 months post-closing.
  6. The original equipment cost of the assets being sold is approximately $85 million.
  7. This divestiture suggests a strategic refocusing of United Rentals' business operations.

03—Questions

Frequently Asked Questions

  1. What business segment is United Rentals selling?

    United Rentals is selling its entire traffic control business, which operates under United Rentals Highway Technologies, Inc. and United Rentals Highway Technologies, L.P.

  2. What is the expected financial impact of this sale?

    The company expects to receive $85 million in cash, subject to adjustments. The original equipment cost of the divested assets is also approximately $85 million. The sale is expected to close in Q1 2007.

  3. What ongoing obligations does United Rentals have after the sale?

    United Rentals will provide indemnification for certain pre-closing liabilities and will offer transition services (accounting, IT, training) for a period of three to six months. They will also maintain certain letters of credit to support surety bonds for the divested business until project completion or the end of 2008.

  4. Who is the buyer of the traffic control business?

    The buyer is HTS Acquisition, Inc., an entity formed by affiliates of private equity investors Wynnchurch Capital Partners II, L.P. and Oak Hill Special Opportunities Fund, L.P.

04—Continue

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