Sunbelt Rentals Buys NationsRentCED Magazine September 2006
Article Date: 09-01-2006
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Merger creates the third largest U.S. rental company.
Sunbelt Rentals will purchase NationsRent in a transaction valued at $1.05 billion, creating the third largest rental company in the United States. The combined company will have 477 locations in 35 states, with approximately 7,000 employees. Two senior executives at NationsRent, Bryan Rich and Charles Snyder, have agreed to join the Sunbelt executive management team.
The combined fleets have a rental fleet base of approximately $2.2 billion of original cost, says Cliff Miller, president and CEO of Sunbelt.
"This will bring together two well-known brands and two well-respected companies that share a very strong focus on customer satisfaction," says Miller. "It is fitting that the primary beneficiaries of this combination will be the customers of Sunbelt and NationsRent, as well as the employees who have worked so hard to build both organizations."
According to Jeff Putnam, Nations-Rent's CEO, NationsRent's board of directors voted unanimously in favor
of the merger.
"NationsRent employees will be joining a company that is performing at the top of our industry with strong revenue and operating cash flow growth," says Putnam. "With limited geographic overlap, this combination will allow NationsRent employees to continue to serve our customers and provide an opportunity for career growth.
"For NationsRent's stockholders, the transaction will allow them to realize an attractive return generated by the growth of the company over the past three years."
Sunbelt Rentals is a subsidiary of Ashtead Group. According to George Burnett, CEO of Ashtead, by combining the two companies, customers stand to gain benefits of scale in both customer service and buying power.
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