United Rentals Will Sell to Private EquityCED Magazine September 2007
Article Date: 09-03-2007
Copyright(C) 2008 Associated Equipment Distributors. All Rights Reserved.
Private equity firm Cerberus Capital Management has agreed to purchase United Rentals for $6.6 billion, including the assumption of approximately $2.6 billion in debt. United Rentals announced on April 10, 2007 that it had commenced a process to explore strategic alternatives.
"We're pleased that our strategic alternatives process has resulted in this favorable agreement for our shareholders," said Bradley S. Jacobs, United Rentals' chairman. "This transaction is a credit to the thousands of United Rentals employees who have created unmatched value in our industry. A decade ago we started United Rentals with little more than a concept and achieved industry leadership in just 13 months. Today we remain the preeminent equipment rental company in the world."
Michael J. Kneeland, United Rentals' CEO, says the company will continue to focus on customer service and employee satisfaction.
"Cerberus is a firm that shares our deep respect for operational excellence," said Kneeland. "They have an impressive track record of investing in industry leaders and working constructively with management teams to accelerate profitability and growth."
At press time, United Rentals' board of directors had approved the merger agreement and recommended the approval of the transaction by United Rentals stockholders.
For more information, visit www.unitedrentals.com or www.cerberuscapital.com
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