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United Rentals T Buy Ahern Rentals For $2 Billion

By  |  November 14, 2022

United Rentals  said on Monday it would acquire the assets of smaller rival Ahern Rentals for about $2 billion in cash, as the equipment rental firm looks to expand its US presence.

The deal will help United better capitalize on rising demand from manufacturers and construction companies as they ramp up output amid a post-pandemic rebound in industrial activity.

This is the latest in a string of acquisitions by the Stamford, Connecticut-based company over the past few years.

Related: United Rentals, RSC Holdings receive no-action letter from Competition Bureau

“URI (United Rentals Inc) has a track record of meaningfully improving margins in acquired general rental businesses,” said Goldman Sachs analyst Jerry Revich.

United, which said it can get more productivity out of Ahern’s fleet, expects the deal to generate about $40 million of annualized cost synergies within the first 12 to 18 months of closing.

The deal is estimated to close before the end of this year.