AROUND THE NETWORK: United Rentals Will Acquire Ahern Rentals for $2 Billion

BuiltWorlds member United Rentals has entered into a definitive agreement to acquire the assets of family-owned Ahern Rentals, Las Vegas, for approximately $2 billion in cash. The board of directors of United Rentals has unanimously approved the agreement. The transaction is expected to close prior to year-end 2022, subject to customary conditions.

Founded in 1953, Ahern Rentals is the eighth largest equipment rental company in North America, with approximately 2,100 employees and 106 locations in 30 states serving approximately 44,000 customers in the construction and industrial sectors. For the trailing 12 months ended Sept. 30, 2022, Ahern Rentals generated $310 million of adjusted earnings before interest, tax, depreciation and amortization (EBITDA) on $887 million of total revenue.

“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 organizations moving forward together. We’re leveraging our competencies in larger-scale M&A [mergers and acquisitions] to augment both our near- and long-term earnings power,” said Matt Flannery, United Rentals CEO.

“Our integration playbook is underway so we can prepare the acquired branches to take full advantage of our systems and operational capabilities, and gain from our employee and customer-centric culture. I look forward to welcoming our new team members upon the closing of the acquisition,” Flannery said.

United Rentals currently plans to pause its $1.25 billion share repurchase program through the initial phase of the integration, consistent with its approach during the integrations of similarly sized general rental transactions.

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