United Rentals acquires Franklin Equipment and General Finance Corporation
United Rentals, Inc. has acquired Franklin Equipment, LLC, a regional provider of equipment rentals, sales and related services in the midwest and southeast United States and General Finance Corporation, a mobile storage and modular office provider.
Franklin Equipment was founded in 2008 and grew to 20 locations serving general contractors in Ohio, Indiana, Wisconsin, Kentucky, Tennessee, Alabama, Georgia and South Carolina.
“Today, we welcomed nore than 300 new members to Team United with our acquisition of Franklin Equipment. This transaction expands our presence in key markets for our general rentals business, with an experienced team that shares our pride in delivering superior customer service,” says Matthew Flannery, president and chief executive officer of United Rentals.
Sullivan & Cromwell LLP acted as United Rentals’ legal advisor in the transaction, and Lape Mansfield Nakasian & Gibson, LLC acted as Franklin Equipment’s legal advisor. The purchase price was not disclosed.
In another action, United Rentals acquires General Finance Corporation in a $1 billion transaction that United Rentals reports will establish it as a leader in the mobile storage and modular office sectors in key markets, expanding the equipment rental industry’s most complete service offering.
General Finance, which operates as Pac-Van and Container King in the U.S. and Canada and as Royal Wolf in Australia and New Zealand, is a leading provider of mobile storage and modular office space. Its network of 106 branches and more than 900 employees serves diverse end markets, including construction, commercial, industrial, retail, transportation, petrochemical, consumer, natural resources, governmental and education.
Following completion of the tender offer, a wholly-owned subsidiary of United Rentals will merge with and into General Finance and shares of General Finance common stock that have not been tendered and purchased in the tender offer will be converted into the right to receive $19 per share in cash. The transaction is expected to close in the second quarter of 2021. The company plans to update its 2021 financial outlook to reflect the combined operations following the completion of the transaction.
General Finance operates in 52 of the top 100 MSAs in North America served by United Rentals locations, which will create immediate cross-sell opportunities. Importantly, United Rentals will have the ability to introduce mobile storage and modular office solutions in its MSAs currently not served by General Finance.
General Finance’s mobile storage and office business in Australia and New Zealand will give United Rentals entry into these geographies with an established platform run by a seasoned management team, and with a strong growth strategy already in place.
Approximately 900 General Finance employees will bring a wealth of experience to United Rentals in the combination. They will benefit from industry-leading technology, state-of-the-art training and safety programs and other resources, and have greater opportunities for career development within the larger company.
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