United Rentals to Acquire RSC Holdings

United Rentals Inc. and RSC Holdings Inc. have entered into a definitive merger agreement, under which United Rentals will acquire RSC in a cash-and-stock transaction valued at $18 per share, or a total enterprise value of $4.2 billion, including $2.3 billion of net debt. The boards of directors of both companies have unanimously approved the proposed transaction and recommended that their respective stockholders approve the proposed transaction.

The proposed transaction will create a leading North American equipment rental company with a more attractive business mix, greater scale and enhanced growth prospects. The combination is also expected to accelerate United Rentals’ growth with industrial customers as well as provide a lower cost base and a less volatile revenue profile to better position the company through all phases of the business cycle.

The new United Rentals is well-positioned to benefit from increased rental penetration, the continued strength of the industrial sector, serving customers across a variety of industries and a recovery in construction activity. United Rentals and RSC have already begun working on a plan to facilitate a smooth integration of the businesses and realization of over $200 million of potential cost savings.

Upon the close of the transaction, three of RSC’s independent directors will receive seats on United Rentals’ existing board of directors. Michael Kneeland, president and CEO of United Rentals, and Jenne Britell, United Rentals’ chairman, will remain in their positions at the combined company.