United Rentals to buy RSC Holdings for $4.2 billion
16 Dec 2011
The world's largest equipment rental company United Rentals today agreed to buy its smaller rival RSC Holdings in a $4.2-billion deal that will create North America's largest rental equipment company.
Based in Scottsdale, Arizona, RSC Holdings is the holding company for RSC Equipment Rental, Inc, which has $2.7 billion worth of equipment and rents it in North America, to the industrial, maintenance, non-residential, construction markets,
RSC operates through a network of 452 branch locations across 42 states in the US and three provinces in Western Canada.
The cash-and-stock transaction, which has been approved by both boards, values RSC at $18.00 per share, including $2.3 billion of net debt.
The offer is a 58-per cent premium to RSC's closing price of $11.37 on the New York Stock Exchange yesterday.
Stamford, Connecticut-based investment firm Oak Hill Capital Partners, which owns 33.5 per cent of RSC, will agree to the deal, both companies said in a statement.
.webp)
