United Rentals’ Acquisition of Neff Corp. Finalized

United Rentals has completed its acquisition of Neff Corp. for a total purchase price of approximately $1.3 billion.

Oct. 3, 2017

2 min read

United Rentals looks forward to the synergies of its diverse fleet particularly strong in aerial equipment and specialty offerings with Neff39s strength in earthmoving equipment — United Rentals looks forward to the synergies of its diverse fleet, particularly strong in aerial equipment and specialty offerings, with Neff's strength in earthmoving equipment.

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.

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.