United Rentals to acquire NES Rentals
United Rentals, Inc. recently announced it will acquire NES Rental Holdings II Inc. for approximately $965 million in cash.
The board of directors of United Rentals and Diamond Castle Holdings LLC, the majority owner of NES, unanimously approved the agreement. The transaction is expected to close early in the second quarter of 2017, subject to Hart-Scott-Rodino clearance and customary conditions.
NES is one of the 10 largest general equipment rental companies in the United States, specializing in providing aerial equipment to approximately 18,000 customers across the industrial and non-residential construction sectors. Based in Chicago, NES has 73 branches and approximately 1,100 employees, with a concentration in the eastern half of the United States.
In 2016, NES generated an estimated $155 million of EBITDA at a 42.1% margin on $369 million of total revenue. As of December 31, 2016, NES had approximately $900 million of fleet at original equipment cost.
United Rentals plans to update its 2017 financial outlook to reflect the combined operations upon completion of the transaction.
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