United Rentals completes RSC acquisition
By Lindsey Anderson30 April 2012
United Rentals has completed its acquisition of RSC Holdings Inc. in a cash-and-stock transaction valued at US$18 per share for a total enterprise value of $4.2 billion including $2.3 billion in debt, United Rentals announced.
Under the terms of the deal announced in December, RSC shareholders will receive $10.80 in cash and 0.2783 of a share of United Rentals common stock for each of their RSC shares.
Jenne Britell remains chairman of United's board and three of RSC's independent directors - James Ozanne, Pierre Leroy and Donald Roof - joined the United Rentals board, effective Monday.
In connection with the closing, United's board approved a new $200 million stock buyback program. The program has no expiration date, but United said it expects that all of the shares will be repurchased with 18 months of closing.
"We are pleased to announce the closing of this historic combination," said Michael Kneeland, president and chief executive officer of United Rentals.
"This combination will bring together two highly respected businesses to create a company that will provide our customers with an unparalleled level of fleet availability and customer service. We look forward to immediately begin working with our new colleagues at RSC to leverage the operational and cultural strengths of both companies."