United Rentals To Buy BlueLine From Platinum Equity For $2.1 Bln – Quick Facts

United Rentals, Inc. (URI) has agreed to acquire equipment rental company BlueLine Rental from global investment firm Platinum Equity for about $2.1 billion in cash, the two companies said Monday.

The board of directors of United Rentals has unanimously approved the agreement. The transaction is expected to close in the fourth quarter of 2018.

United rentals note that BlueLine’s footprint will increase United Rentals’ capacity in many of the largest metropolitan areas in North America, including both U.S. coasts, the Gulf South and Ontario. The addition of BlueLine’s fleet will also expand United Rentals’ fleet by over 46,000 rental assets with an original cost of about $1.5 billion.

BlueLine is one of the ten largest equipment rental companies in North America, serving over 50,000 customers in the construction and industrial sectors with a focus on mid-sized and local accounts. The company has 114 locations and over 1,700 employees based in 25 U.S. states, Canada and Puerto Rico.

For the trailing 12 months ended August 31, 2018, BlueLine generated an estimated $313 million of adjusted EBITDA at a 39.8 percent margin on $786 million of total revenue.

The transaction is not conditioned on financing. United Rentals expects to use a combination of newly issued debt and bank borrowing to fund the transaction and related expenses.

United Rentals expects the acquisition to be immediately accretive to its adjusted earnings per share and free cash flow generation. The company plans to update its 2018 financial outlook to reflect the combined operations upon completion of the transaction.

United Rentals also said it plans to pause its current $1.25 billion share repurchase program upon closing the BlueLine acquisition to integrate the operations and assess other potential uses of capital. This is consistent with the company’s approach during the integrations of NES Rentals and Neff Rental in 2017.

by RTTNews Staff Writer

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