United Rentals has completed its acquisition of Neff Corp. for a total purchase price of approximately $1.3 billion. The acquisition was funded primarily through newly issued unsecured debt.
The purchase will augment the company’s earthmoving capabilities and efficiencies of scale in key market areas, particularly fast-growing southern geographies, and is expected to lead to attractive revenue synergies through the cross-selling of United Rentals’ broader fleet, including its specialty offerings. The assets acquired with Neff include about $867 million of fleet based on original equipment cost, and 69 branch facilities serving end markets in the infrastructure, non-residential, energy, municipal and residential construction sectors.
“We’re excited to complete the Neff combination and begin leveraging the many areas where we’re stronger together,” said Michael Kneeland, president and CEO of United Rentals. “Today we welcome approximately 1,200 new colleagues who share our focus on safety and customer service.”
United plans to update its 2017 financial outlook to reflect the combined operations when it releases financial results for the third quarter.
Neff’s common stock will no longer be listed for trading on the New York Stock Exchange.
Morgan Stanley & Co. LLC and Centerview Partners acted as financial advisors to Untied Rentals, and Sullivan & Cromwell LLP acted as the company legal advisor. Deutsche Bank acted as financial advisor to Neff Corp. and Akin Gump Strauss Hauer & Felt LLP acted as Neff’s legal advisor.