Summary
United Rentals, Inc. (URI) has announced the successful completion of its acquisition of General Finance Corporation (GFN) through its wholly-owned subsidiary, United Rentals (North America), Inc. (URNA). The acquisition was finalized on May 25, 2021, following a cash tender offer that commenced on April 26, 2021, and expired on May 21, 2021. The tender offer saw significant participation, with approximately 91.4% of GFN's common stock tendered and accepted for payment. This transaction represents a significant step for United Rentals, expanding its asset rental capabilities. The aggregate consideration for the acquisition, including assumed debt, was approximately $996 million. In conjunction with the completion of the merger, GFN has initiated the redemption of its outstanding Series B 8% Cumulative Preferred Stock, 9.00% Series C Cumulative Redeemable Perpetual Preferred Stock, and 7.875% Senior Securities due 2025. These redemptions are expected to be completed by June and July of 2021, respectively, and are being funded by United Rentals.
Key Highlights
- 1United Rentals (URI) successfully completed the acquisition of General Finance Corporation (GFN) on May 25, 2021.
- 2The acquisition was executed through a cash tender offer, with 91.4% of GFN's outstanding shares tendered and accepted.
- 3The total transaction cost, including assumed debt, amounted to approximately $996 million.
- 4The funding for the acquisition was sourced from URI's existing cash reserves and its revolving credit facility.
- 5Following the acquisition, GFN's preferred stock (Series B and C) and senior notes are being redeemed.
- 6Redemption dates for GFN's securities are scheduled for June 14, 2021 (Series B Preferred Stock), June 24, 2021 (Series C Preferred Stock), and June 24, 2021 (7.875% Senior Securities due 2025).