Summary
United Rentals, Inc. (URI) announced on November 14, 2022, through its subsidiary United Rentals (North America), Inc. (URNA), the entry into a definitive Asset Purchase Agreement to acquire substantially all of the U.S. equipment rental and sales business assets of Ahern Rentals, Inc. and Xtreme Re-Rental, LLC for $2.0 billion in cash. This strategic acquisition is expected to close prior to December 31, 2022, and will be financed through a combination of newly issued debt and existing asset-backed loan capacity. This significant transaction represents a substantial investment aimed at expanding United Rentals' market presence and capabilities. The acquisition is subject to customary closing conditions, including regulatory approvals, and includes customary representations, warranties, and covenants. The company has already received expiration of the Hart-Scott-Rodino waiting period, indicating a positive step towards completion.
Key Highlights
- 1United Rentals to acquire Ahern Rentals' and Xtreme Re-Rental's U.S. equipment rental and sales business for $2.0 billion in cash.
- 2The transaction is expected to close before the end of 2022.
- 3Financing for the acquisition will come from newly issued debt and existing credit facilities.
- 4The deal involves acquiring substantially all of the specified business assets in the United States.
- 5Customary closing conditions, including regulatory approvals, must be met.
- 6The Hart-Scott-Rodino waiting period has expired.
- 7The agreement includes standard representations, warranties, covenants, and indemnification provisions.