United Rentals, Inc. has agreed to acquire Ahern Rentals, Inc. for approximately $2 billion in cash with the transaction expected to close prior to the end of the year, the company has announced.
The deal will increase capacity for United Rentals in both U.S. coasts and in the Gulf region, expanding its fleet by over 60,000 rental assets and approximately $145 million of non-rental fleet.
Founded in 1953, Ahern Rentals is the eighth largest equipment rental company in North America while over 75% of its rental fleet is comprised of aerial and material handling equipment.
The integration of the acquired branch and sales operations is expected to bring significant opportunities to improve efficiency, productivity and new business development with the adoption of United Rentals technology and field management processes.
Ahern Rentals and United Rentals use a number of the same technology platforms, including the RentalMan ERP system.
Speaking on the announcement Matthew Flannery, chief executive officer of United Rentals, said, “Our acquisition of Ahern Rentals supports our strategy to deploy capital to grow the core business and drive shareholder value. We view ourselves as the ideal owner of these assets within our network, as customers will benefit from the combination of the two organisations moving forward together. We’re leveraging our competencies in larger-scale M&A to augment both our near- and long-term earnings power.”
Don Ahern, chief executive officer of Ahern Rentals, added, “I’m proud of what we’ve built at Ahern Rentals over nearly seven decades, and I’m extremely pleased that the combination with United Rentals will take the business forward in this next chapter of growth. I want to thank our employees for driving the results that make this transaction possible.”
