Summary
United Rentals, Inc. (URI) has officially completed the acquisition of substantially all assets related to the specialty pump and industrial equipment rental businesses of LD Services, LLC, National Pump & Compressor, Ltd., Canadian Pump & Compressor Ltd., and GulfCo Industrial Equipment, L.P. The transaction, which closed on April 1, 2014, involved a total purchase price of approximately $780 million. This was comprised of roughly $765 million in cash and $15 million in unregistered restricted shares of United Rentals common stock. This strategic acquisition significantly expands United Rentals' footprint in the specialty pump and industrial equipment rental market. The deal includes potential for additional cash consideration if certain financial targets are met for the acquired specialty pump business during two post-closing earn-out periods, indicating management's confidence in the future performance of these newly acquired assets.
Key Highlights
- 1Completion of the acquisition of specialty pump and industrial equipment rental businesses from multiple sellers.
- 2Total purchase price of approximately $780 million.
- 3Transaction financed with approximately $765 million in cash and $15 million in United Rentals common stock.
- 4Acquisition includes potential for future earn-out payments based on performance targets.
- 5The acquired assets are related to specialty pump and industrial equipment rental businesses.
- 6This marks a significant expansion in United Rentals' specialty rental offerings.