United/RSC merger details
| December 16, 2011 |
During an investor presentation this morning, United Rentals and RSC announced the following details of their merger:
* The combined companies will have a customer mix of about 47 percent commercial/construction and 35 percent industrial/non-construction, with other markets such as infrastructure and residential rentals taking up the balance. Both companies have considered large customers and national accounts key areas for growth in the past, and that will be emphasized in the future.
* United Rentals will own 70 percent of the resulting company, with the remaining 30 percent owned by RSC.
* United’s chairman, CEO and CFO will remain in place, while RSC’s CEO will “help lead the transition.”
* Combined, United Rentals and RSC have nearly 1,000 locations in North America, although that number will be reduced with the consolidation. United is forecasting a 14 percent cost savings opportunity through branch consolidations.