United Rentals, Inc. (NYSE:URI) today announced that it has completed its previously announced acquisition of National Pump 1 for a combined asset purchase price of approximately $780 million.
The purchase price was comprised of approximately $765 million in cash, funded through newly issued unsecured debt, and approximately $15 million in stock. The transaction structure also provides for additional cash consideration based on the achievement of certain financial targets. The stock consideration has been granted as awards to certain new employees in the form of unregistered restricted shares. The total number of unregistered restricted shares of the company’s common stock was 153,619. 2
The acquisition makes United Rentals the second largest provider of pump rentals in North America, a sector characterized by rapid growth and superior margins. The assets acquired include 37 branch facilities operating in the United States and Canada.
Michael Kneeland, United Rentals president and chief executive officer, said, “We’ve now gained a strong entry into the highly attractive business of pump rentals. Our acquired operations have the right scale to be a platform for the expansion we envision – which is to double our pump rental revenues within five years while realizing a favorable return on capital. We’re excited to welcome the National Pump employees to United Rentals and to move forward with cross-selling to our combined customer base.”In addition to its general rental operations, United Rentals offers engineered solutions through dedicated branches specializing in fluid transfer, trench safety, temporary power, climate control and industrial tools. For more information, see unitedrentals.com. Centerview Partners and Morgan Stanley & Co. LLC acted as financial advisors to United Rentals, and Sullivan & Cromwell LLP served as legal advisor to United Rentals. Catalyst Strategic Advisors, LLC acted as exclusive financial advisor to National Pump, and Fulbright & Jaworski LLP served as legal advisor to National Pump.