Business

United Rentals to buy RSC for $1.9B

Posted December 15, 2011 11:00 pm

Associated Press

NEW YORK — United Rentals says it will buy RSC Holdings Inc. for about $1.9 billion in cash and stock.

The $18-per-share price is a 58 percent premium to RSC’s closing price on Thursday. The deal has been approved by both companies’ boards and is expected to be completed in the first six months of next year.

United Rentals Inc. said Friday the deal is expected to accelerate its growth with industrial customers, lower costs and provide a less volatile revenue stream.

United Rentals is based in Greenwich, Conn. RSC Holdings is based in Scottsdale, Ariz.

Including the assumption of debt, the deal is worth $4.2 billion.

The president and CEO of United Rentals, Michael Kneeland, and its chairman, Jenne Britell, will keep their positions at the combined company.

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