United Rentals completed its previously announced acquisition of RSC in a cash-and-stock transaction valued at $4.2 billion, including $2.3 billion of net debt. The combined company will be called United Rentals.
United Rentals says the combination of the two companies creates a leading North American equipment rental company with a more attractive customer mix, greater scale and enhanced growth prospects. The combination will accelerate the combined company’s potential for growth with industrial customers, as well as provide a lower cost base and a less volatile revenue profile that is expected to better position the combined company through all phases of the business cycle.
As part of the acquisition, the company merged all of RSC’s U.S. domestic subsidiaries, including RSC’s principal operating subsidiary RSC Equipment Rental, and certain of the company’s existing subsidiaries, including United Rentals Northwest and United Rentals (North America), Inc., into a newly formed operating company. Upon completion of the subsidiary reorganization, the new company became URI’s sole operating subsidiary in the United States and was renamed United Rentals (North America), Inc.
Jenne K. Britell will remain chairman of the board of directors of United Rentals. The directors of the combined company will be comprised of the existing United Rentals directors and three of RSC’s independent directors, James Ozanne, Pierre Leroy and Donald Roof, who were elected to the board, effective today.