The deal offers shareholders of the Greenwich, Conn., equipment rental company a 7% premium to Friday's closing price and a 25% premium to its price before it announced in April that it would seek a buyer. The company said the deal is worth $6.6 billion, including the assumption of $2.6 billion worth of debt.
"We're pleased that our strategic alternatives process has resulted in this favorable agreement for our shareholders," said CEO Bradley Jacobs. "This transaction is a credit to the thousands of United Rentals employees who have created unmatched value in our industry. A decade ago we started United Rentals with little more than a concept and achieved industry leadership in just 13 months. Today we remain the preeminent equipment rental company in the world."
The news comes as Cerberus tries to sell a huge amount of debt tied to its acquisition of the Chrysler unit of
, just as investors whipsawed by the sharp decline of the subprime debt market are becoming more averse to the risks associated with junk bonds.