United Rentals will purchase the assets of Ahern Rentals for about $2 billion in cash, as the equipment rental firm looks to expand its U.S. presence.
Ahern was founded in 1953 and is a family-owned equipment rental firm with about 2,100 employees. It operates across 106 locations in 30 U.S. states, with a rental fleet that consists of aerial lifts.
This is the latest in a string of acquisitions by the Stamford, Conn.-based company over the past few years and will help United Rentals better capitalize on rising demand from manufacturers and construction companies as it ramps up output amid a post-pandemic rebound in industrial activity.
United, which said it can get more productivity out of Ahern's fleet, expects the deal to generate about $40 million of annualized cost synergies within the first 12 to 18 months of closing.
United's shares rose more than 1 percent in morning trade, and it expects to fund the deal with a mix of newly issued debt and existing capacity under its Asset-Based Loan (ABL) facility.
The deal is estimated to close before the end of this year. Sullivan & Cromwell LLP acted as legal adviser to United.
