![]() The company currently plans to pause its $1.25 billion share repurchase program through the initial phase of the integration, consistent with its approach during the integrations of similarly sized general rental transactions. United Rentals expects to use a combination of newly issued debt and existing capacity under its ABL facility to fund the transaction and related expenses. The transaction is not conditioned on financing. United Rentals expects to realize approximately $60 million of annual revenue synergies by year three, led by the cross-selling of its specialty rental offerings to an expanded customer base. Importantly, the return profile of the transaction is compelling across a range of macro scenarios. Return on invested capital is expected to exceed the cost of capital within 24 months of closing on a run-rate basis, with an attractive IRR and NPV. ![]() The transaction is projected to result in a net leverage ratio at year-end 2022 at the low end of the company’s target range: 2.1x adjusted EBITDA as-reported and 2.0x on a pro forma basis. The acquisition is expected to be accretive to United Rentals’ adjusted earnings per share and free cash flow generation in its first year post-close. 30, 2022, or 4.5x adjusted EBITDA net of cost synergies and the net present value of tax attributes estimated at $426 million. The purchase price of approximately $2 billion represents a multiple of 6.5x adjusted EBITDA for the trailing 12 months ended Sept. The integration of the acquired branch and sales operations represents significant opportunities to improve efficiency, productivity and new business development with the adoption of United Rentals technology and field management processes. Notably, over 75% of Ahern Rentals’ rental fleet is comprised of high-demand aerial and material handling equipment. The combination will expand the fleet available to United Rentals customers by over 60,000 rental assets with an original cost of $1.85 billion, as well as approximately $145 million of non-rental fleet. ![]() The combination will increase capacity for United Rentals in key geographies, with concentrations on both U.S. Ahern Rentals’ customer service footprint of branches, fleet and experienced employees is complementary with United Rentals’ existing network. 30, 2022, Ahern Rentals generated $310 million of adjusted EBITDA on $887 million of total revenue.Ĭonsistent with United Rentals’ “grow the core” strategy, customers of both companies will be better served by the combined scale, and legacy customers of Ahern Rentals will benefit from one-stop access to United Rentals’ specialty rental offerings. The board of directors of United Rentals unanimously approved the transaction. The transaction is expected to close before the end of 2022, subject to customary conditions. “Telematics technology generates valuable insights for our customers into the condition, utilisation, location and performance of their rented and owned fleets.”Īs well as telematics-enabled equipment, United Rentals also provides a cloud-based worksite management tool through its Total Control platform, which allows users of rented or owned equipment to monitor and manage environmental impact of equipment, track engine hours and fleet utilisation.United Rentals entered into an agreement to acquire the assets of the family-owned Ahern Rentals, founded in 1953, for roughly $2 billion in cash. ![]() If they don’t have visibility to equipment operating on their sites, they could face cost or schedule overruns, as well as safety risks. Tony Leopold, Senior Vice President, strategy and digital at United Rentals, said, “Businesses face ever-increasing pressure to improve productivity and safety on jobsites. To date, the US-based rental firm has added telematics to aerial work platforms, earthmoving equipment, generators, all-electric trucks, compressors, e-dumpsters, light towers as well as a number of other rental units. ![]() United said telematics allows users to increase productivity and safety on jobsites by improving equipment uptime, optimising equipment utilisation, improving jobsite safety and security and advancing sustainability targets. The company, which rents more than 4,500 classes of equipment, said the technology is part of a long-standing drive to use “data to improve the customer experience” and “enhance the value” that its fleet offers. ![]()
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