United Rentals, Inc. announced it has completed its previously announced acquisition of BlueLine from Platinum Equity for a total purchase price of approximately $2.1 billion in cash. United Rentals used a combination of newly issued debt and bank borrowings to fund the transaction and related expenses.
The acquisition Vander Holding Corporation and its subsidiaries, including BlueLine Rental, LLC, expands United Rentals’ equipment rental capacity in many of the largest metropolitan areas in North America, including both U.S. coasts, the Gulf South and Ontario, Canada. The company said it gains a well-diversified customer base with a balanced mix of commercial construction and industrial accounts, over 46,000 rental assets, 114 branch locations and approximately 1,700 employees.
“We’re excited to welcome BlueLine to the United Rentals family, and we’re confident that the strategic and financial merits of the acquisition will benefit our customers, shareholders and employees,” said Michael Kneeland, Chief Executive Officer of United Rentals. “Moreover, we look forward to leveraging our extensive integration capabilities to ensure that we generate the greatest value from combining our companies. Together, our enhanced scale and operating efficiencies reinforce our leadership position in the North American market and support our focus on driving long-term value creation.”
United Rentals now projects total revenue for 2018 of $7.89 billion to $7.99 billion.
Louis Samson, partner at Platinum Equity, said, “The combination with United Rentals is the optimal conclusion to our BlueLine investment. We’re extremely pleased with this transaction and the opportunities created for the BlueLine team and customers. It’s fitting that their next phase of growth will be with the industry leader.”
Morgan Stanley & Co. LLC and Centerview Partners acted as financial advisors to United Rentals, and Sullivan & Cromwell LLP acted as legal advisor. Barclays and Catalyst Strategic Advisors acted as financial advisors to Platinum Equity, and Latham & Watkins LLP acted as legal advisor.
United Rentals, the largest equipment rental company in the world, has an integrated network of 1,189 rental locations in North America and 11 in Europe. In North America, the company operates in 49 states and every Canadian province. The company’s approximately 18,400 employees serve construction and industrial customers, utilities, municipalities, homeowners and others.
The company on Oct. 22 announced United Rentals of Canada, Inc., a wholly owned subsidiary, has entered into a definitive agreement to acquire the assets of WesternOne Rentals & Sales LP from parent WesternOne Inc. for approximately $91.8 million in cash. The transaction is expected to close before year-end subject to approval by the shareholders of WesternOne Inc. and certain other customary conditions.
WesternOne is a leading regional equipment rental provider of aerial lifts and heat solutions in Western Canada, with additional offerings of temporary power, general construction equipment and fuel delivery. The company’s 12 locations and approximately 330 employees serve primarily non-residential construction and industrial customers in Alberta, British Columbia and Manitoba, with a notable presence in the sports and entertainment vertical.
“The acquisition of WesternOne Rentals & Sales will expand both our general rental and specialty offerings in key Canadian provinces,” Kneeland said. “WesternOne’s aerial and portable heat rentals dovetail with our own range for construction and industrial customers. We’ll also gain scale and diversification in two areas: the sports and entertainment vertical, with a focus on film and television production, and a comprehensive propane and diesel fuel service.”