United Rentals To Acquire NES Rentals For Approx. $965 Mln - Quick Facts

(RTTNews) - United Rentals, Inc. (URI) and NES Rentals Holdings II, Inc. announced they have entered into a definitive agreement under which United Rentals will acquire NES for approximately $965 million in cash. NES is one of the ten 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, Ill., 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. The company expects the acquisition to be immediately accretive to adjusted earnings per share and free cash flow generation for the full year 2017. Return on invested capital is expected to exceed the cost of capital within 18 months of closing. The transaction is expected to close early in the second quarter of 2017.