Wired News – United Rentals Expands Into Specialty Rentals and The European Market with Acquisition Of BakerCorp

LONDON, UK / ACCESSWIRE / July 5, 2018 / If you want access to our free research report on United Rentals, Inc. (NYSE: URI), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=URI as the Company’s latest news hit the wire. On July 02, 2018, the Company announced that it has signed an agreement to acquire BakerCorp International Holdings, Inc. (“BakerCorp”). The all-cash deal is valued at approximately $715 million. The deal is expected to expand United Rentals’ fleet to handle specialty rentals and provide entry to select European markets. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Change in Financial Leadership

In a separate announcement, on the same day, United Rentals announced that William Plummer, the Executive Vice President (EVP) and Chief Financial Officer (CFO) would retire on October 12, 2018. Plummer joined in 2008 and has the distinction of being the longest-serving CFO of the Company. He will continue to be associated with the Company as an advisor till January 31, 2019. The Company’s Board has identified Jessica Graziano as the successor for Plummer and she will take over as the CFO on October 12, 2018. Graziano has been with the Company since December 2014 when she joined as the Controller and Principal Accounting Officer. She is currently the Senior Vice President – Controller and Principal Accounting Officer, since March 2017.

Management Quotes

Sharing his views on the acquisition of BakerCorp, Michael Kneeland, Chief Executive Officer (CEO) of United Rentals, said:

“We set a high bar across strategic, financial, and cultural metrics when evaluating any acquisition. BakerCorp met every test, with the additional advantage of being primed to benefit from our systems and technology. We expect the combination to augment our revenues, earnings, and EBITDA in 2018, while propelling the growth of one of our most promising specialty segments.”

Bob Craycraft, President and CEO of BakerCorp, added:

“The value we’ve delivered for our customers has created this new opportunity to be part of the largest equipment rental Company in the world. The combination with United Rentals is an exciting development for the future of both our customers and employees.”

About BakerCorp International Holdings Inc.

Headquartered in Plano, Texas, BakerCorp was started in 1942 by R J Baker as a vacuum truck Company. It has grown into a global provider of tank, pump, filtration, and trench shoring rental solutions operating within the specialty sector of the broader industrial and construction services industry. The Company’s fleet includes steel tanks, polyethylene tanks, modular tanks, roll-off boxes, pumps, pipes, hoses and fittings, filtration, tank trailers, berms, and trench shoring equipment. The Company’s operations are spread across 46 locations in the US and Canada, and nearly 11 locations across France, Germany, the UK, and the Netherlands. The Company’s total revenues were $295 million and its adjusted EBITDA were $79 million for the trailing 12 months ended May 31, 2018. The Company’s International operations accounted for approximately 15% of total revenues for its fiscal year ended January 31, 2018. At present, the Company has over 950 employees and nearly 4,800 customers in North America and Europe.

Highlights of the Deal

United Rentals has signed an agreement to acquire BakerCorp for approximately $715 million in cash. The deal has been approved by the Board of Directors of both Companies. The deal is expected to close in Q3 2018, subject to regulatory approvals and other closing conditions. United Rentals plans to use a mix of cash on hand plus existing credit facilities to finance the acquisition. However, the Company clarified that the deal is not subject to any financing conditions. The Company also plans to share the financial impact of the deal on its financials once the transaction is completed. BakerCorp is expected to be integrated with the Pump Solutions division of United Rentals on completion of the deal.

Benefits of Acquisition for United Rentals

United Rentals expects the deal to be accretive to its adjusted earnings per share (EPS) within three years of completing the deal. The Company is confident that the recently announced $1.25 billion share buybacks will not be impacted by the acquisition of BakerCorp. The acquisition is also expected to result in cost synergies and savings of approximately $19 million for United Rentals.

The deal will allow United Rentals to expand its customer base across the industrial and construction sectors, as well as add nearly 24,000 units to its fleet. The deal will also lead to new opportunities to increase its revenues by way of cross-selling, re-rent conversion, and economies of scale. The Company will broaden its portfolio of service offerings to its customers with BakerCorp’s comprehensive liquid and solid containment solutions. The deal will also provide the Company entry into select European markets for the rental of fluid solutions where BakerCorp has significant presence. Both Companies also have similar corporate culture and ethos when it comes to safety, customer service, employee relationships, etc.

About United Rentals Inc.

Stamford, Connecticut-based United Rentals was founded in 1997 and it is the largest equipment rental Company in the world. The Company offers approximately 3,400 classes of equipment valued over $11.39 billion for rent to construction and industrial customers, utilities, municipalities, homeowners, and others. The Company has a network of 1,002 rental locations in 49 states and every Canadian province. The Company is supported by approximately 15,000 employees.

Stock Performance Snapshot

July 02, 2018 – At Monday’s closing bell, United Rentals’ stock marginally climbed 0.28%, ending the trading session at $145.15.

Volume traded for the day: 643.95 thousand shares.

Stock performance in the past twelve-month period – up 28.21%

After last Monday’s close, United Rentals’ market cap was at $12.23 billion.

Price to Earnings (P/E) ratio was at 16.98.

The stock is part of the Services sector, categorized under the Rental & Leasing Services industry.

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