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United Rentals (URI) acquires RSC Holdings (RRR) in a cash-and-stock deal for a total enterprise...

United Rentals (URI) acquires RSC Holdings (RRR) in a cash-and-stock deal for a total enterprise value of $4.2B inclusive of $2.3B in net debt. Under the terms of the merger, each share of RSC common stock will convert into $10.80 in cash and 0.2783 shares of URI.
Comments (1)
  • This really changes the equipment rental landscape. The deal gives URI the lion's share of the industrial rental space. This helps to smooth the cycle dependence URI had on the US construction industry. Great for the URI bottom line!
    The losers in the deal will be the OEM manufacturers. URI will demand (and get) the best possible pricing on new equipment. This gives them a net margin advantage and allows them to take lower margin deals while still maintaining a suitable margin rate.
    You wonder who's next in the consolidation game?
    17 Dec 2011, 09:33 PM Reply Like
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