AHERN RENTALS acquired by UNITED RENTALS

United Rentals acquired the assets of Ahern Rentals for an enterprise value of $2.0B in cash, completing the transaction after its earlier announcement. The seller was Ahern Rentals, the equipment rental operator. The transaction was structured as an asset purchase, with United Rentals taking over the rental fleet, branch network and workforce rather than the corporate entity. The acquisition added approximately 2,100 employees, 60,000 rental assets and 106 locations in the United States to United Rentals, and extended the company's specialty rental solutions to new construction and industrial customers. United Rentals funded the transaction and related expenses through a combination of newly issued senior secured notes and existing capacity under its asset-based lending facility. The company stated that it would issue its 2023 guidance in January, reflecting a full year of contribution from the combination. United Rentals is an equipment rental company listed on the New York Stock Exchange, while Ahern Rentals was a privately held rental operator. The deal gave United Rentals a larger footprint in the United States and broadened its customer base in construction and industrial end markets. Matthew Flannery was chief executive officer of United Rentals at the time of the transaction.

The acquisition of Ahern Rentals is part of the growth strategy of United Rentals, which already has several external growth operations under its belt, notably General Finance in 2021.