Stamford, CT - United Rentals says it's buying National Pump, the second-largest pump rental company in North America, for $780 million.
The deal will cost the Stamford, CT-based United Rentals $765 million in cash and $15 million in stock, plus up to $125 million more if certain financial targets are met. United Rentals will fund the deal with existing cash and an unspecified amount of new debt.
The purchase of the Beaumont, TX, company is expected to close early next quarter.
National Pump rents equipment mainly to the oil, gas, and petrochemical industries. It was founded in 2007.
United Rentals says it's the largest equipment rental company in the world. The company says the purchase is part of its strategy to expand specialty businesses.