On Monday, United Rentals (NYSE: URI), an equipment rental company announced that it will acquire the assets of family-owned Ahern Rentals for around $2.0 billion in cash. The transaction is expected to close before the end of this year.
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Ahern Rentals was founded in 1953 and is the eighth-largest equipment rental company in North America. For the year ended September 30, 2022, Ahern Rentals generated revenues of $887 million and adjusted EBITDA of $310 million.
United Rentals expects that this acquisition “will expand the fleet available to United Rentals customers by over 60,000 rental assets with an original cost of $1.85 billion, as well as approximately $145 million of non-rental fleet.”
The acquisition is expected to be accretive to the company’s “adjusted earnings per share and free cash flow generation in its first year post-close.”