GENERAL FINANCE acquired by UNITED RENTALS

United Rentals agreed on 15 April 2021 to acquire General Finance Corporation, the Nasdaq-listed provider of mobile storage and modular office space, at $19 per share in cash, giving an enterprise value of $996M including the assumption of $400 million of net debt. The deal was structured as a tender offer, to be launched by 26 April, followed by a merger at the same price for any shares not tendered, and both boards approved it unanimously. Completion was expected in the second quarter of 2021, subject to clearance under the Hart-Scott-Rodino Act and other regulatory approvals. General Finance generated revenue of and an adjusted EBITDA of in the twelve months to 31 December 2020, an EBITDA margin of , giving an EV/EBITDA multiple of net of synergies, or 8.8 times including the net present value of acquired tax benefits. It ran 106 branches with over 900 employees and a rental fleet of around 100,000 units with an original cost of about $639 million. The purchase took United Rentals into mobile storage and modular office space, a segment it did not previously serve, and gave it a first foothold in Australia and New Zealand through Royal Wolf. General Finance operated in 52 of the top 100 metropolitan areas already covered by United Rentals branches, creating immediate cross-selling opportunities, and United Rentals could in turn introduce storage and office solutions in the markets General Finance did not reach. The company targeted $65 million of revenue synergies over the first three years and $17 million of cost synergies by the end of year two, and expected return on invested capital to exceed its cost of capital within 18 months of closing.

By taking control of General Finance, United Rentals continues its expansion strategy. Previously, the group had completed 3 acquisitions, including Blueline Rental in 2018.