United Rentals has agreed to acquire the assets of family-owned Ahern Rentals for USD2 billion in cash.
United Rentals is the largest equipment rental company in the world, with rental locations in North America, Europe, Australia and New Zealand, serving construction and industrial customers, utilities, municipalities, homeowners and others.
Reuters attributes the purchase to United’s desire to expand its US presence.
The deal will help United better capitalise on rising demand from manufacturers and construction companies as they ramp up output amid a post-pandemic rebound in industrial activity.
United expects the deal to generate about USD40 million of annualised cost synergies within the first 12 to 18 months of closing.
United has an integrated network of 1,331 rental locations in North America, 11 in Europe, 28 in Australia and 18 in New Zealand.
In North America, the company operates in 49 states and every Canadian province.
Ahern was founded in 1953 and is a family-owned equipment rental firm with about 2,100 employees. It operates across 106 locations in 30 US states, with a rental fleet that consists of aerial lifts.