United Rentals is acquiring NES Rentals Holdings, II Inc. for approximately $965 million in cash.
The board of directors of United Rentals and Diamond Castle Holdings LLC, the majority owner of NES, unanimously approved the agreement. The transaction is expected to close early in the second quarter of 2017.
NES is one of the 10 largest general equipment rental companies in the U.S., specializing in providing aerial equipment to approximately 18,000 customers across the industrial and non-residential construction sectors. Based in Deerfield, IL, NES has 73 branches and approximately 1,100 employees, with a concentration in the eastern half of the U.S.
United Rentals and NES Rentals both rent out construction equipment such as cranes and forklifts to customers in the industrial and non-residential construction sectors.The deal is expected to expand United Rentals presence on the East Coast, Gulf states and the Midwest.
Michael Kneeland, president and CEO of United Rentals, described NES as a "well-run operation that’s primed to benefit from our technology, infrastructure and cross-selling capabilities," He added, "Most importantly, we’re gaining a great team that shares our intense focus on safety and customer service."
Stamford, CT-based United Rentals also reported strong profit earnings for Q4. Total revenue for Q4 2016 was $1.523 billion and rental revenue was $1.298 billion, compared with $1.523 billion and $1.278 billion, respectively, for the same period the prior year. For the full year 2016, total revenue was $5.7 billion and rental revenue was $4.9 billion, compared with $5.8 billion and $4.9 billion, respectively, for 2015.
United Rentals forecasts 2017 total revenue of $5.75 billion to $5.95 billion.