United Rentals To Buy National Pump For About $780 Mln

(RTTNews) - United Rentals Inc. (URI) Sunday said it agreed to buy four pump rental companies in North America for a total of about $780 million. The company also lifted its full-year revenue outlook to reflect the acquisition.

Stamford, Connecticut-based United Rentals is acquiring four entities-- National Pump & Compressor Ltd., Canadian Pump and Compressor Ltd., GulfCo Industrial Equipment LP and LD Services LLC--, collectively called National Pump.

The Board of both United Rentals and the partners of National Pump have unanimously approved the deal.

United Rentals, the largest construction-equipment rental company in the US, intends to expand its portfolio to include the pump rental segment, which it believes to be one of the largest and highest growth specialty markets.

United Rentals will acquire National Pump for a purchase price of $780 million, consisting of $765 million in cash and $15 million in stock. The transaction structure also provides for additional cash consideration based on achievement of certain financial targets.

Upon the completion of the acquisition, National Pump will become part of the United Rentals Specialty Division under the leadership of Paul McDonnell, Senior Vice President of Specialty Rentals.

For the full year 2014, United Rentals now expects revenues of $5.45 billion to $5.65 billion. Analysts polled by Thomson Reuters currently estimate revenues of $5.39 billion. Initially, the company expected revenues of $5.25 billion to $5.45 billion.