U.S.A : United Rentals announces the acquisition of NES Rentals

United Rentals, Inc. the largest equipment rental in the world has announced a settlement of an agreement to acquire NES Rental Holdings II, Inc, a leading US aerial equipment rental company.

The board of directors of United Rentals and Diamond Castle Holdings LLC, the majority owner of NES, had unanimously approved the agreement amounting approximately $965 million in cash. The transaction is expected to close early in the second quartier of 2017, subject to Hart-Scott-Rodino clearance and customary conditions.

United Rentals, Inc., has an integrated network of 887 rental locations in 49 states and every Canadian province and offers approximately 3,200 classes of equipment for rent with a total original cost of $ 8.99 billion while NES Rental is a leading aerial equipment rental company based in Chicago. The company has a network of 73 rental locations in 31 states offering approximately $900 million of fleet at original equipment cost.

The consolidation of United Rentals and NES will generate a strong and significant strategic rationale, such as increasing the company’s density in important markets, strengthening the company’s relationship with local and strategic accounts in the construction and industrial sectors. Moreover, the two entities share many cultural attributes, strong focus on safety, a customer-first business philosophy, best practices for talent development and retention.

“This exciting transaction will augment our revenue, earnings, EBITDA, free cash flow and overall scale, and expand our base of local and strategic accounts at a key point in the demand cycle” comments Michael Kneeland, President and CEO of United Rentals.