United Rentals recently announced  that it had signed a definitive merger agreement to be acquired by affiliates of Cerberus Capital Management in a transaction valued at approximately $6.6 billion, including the assumption of approximately $2.6 billion in debt obligations. Established in 1992, Cerberus Capital Management L.P. is one of the world’s leading private investment firms, with approximately $25 billion under management in funds and accounts.

Under the terms of the agreement, United Rentals stockholders will receive $34.50 in cash for each share of United Rentals common stock that they hold. The purchase price per share represents a 25 percent premium over United Rentals’ closing share price of $27.55 prior to the company’s announcement on April 10 that it had commenced a process to explore a broad range of strategic alternatives.

“We’re pleased that our strategic alternatives process has resulted in this favorable agreement for our shareholders,” said Bradley S. Jacobs, chairman of United Rentals. “This transaction is a credit to the thousands of United Rentals employees who have created unmatched value in our industry. A decade ago we started United Rentals with little more than a concept and achieved industry leadership in just 13 months. Today, we remain the preeminent equipment rental company in the world.”

Michael J. Kneeland, CEO of United Rentals, said, “We will continue to focus intensely on customer service and employee satisfaction. Cerberus is a firm that shares our deep respect for operational excellence. They have an impressive track record of investing in industry leaders and working constructively with management teams to accelerate profitability and growth.”

The board of directors of United Rentals has approved the merger agreement and has recommended the approval of the transaction by United Rentals stockholders.

Completion of the transaction is subject to customary closing conditions, including approval of the transaction by United Rentals’ stockholders and regulatory review.

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