United Rentals
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| United Rentals | |
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| Type | Construction & Industrial Rentals and Sales |
| Founded | 1997 |
| Headquarters | Greenwich, Connecticut |
| Key people | Michael J. Kneeland, CEO company_slogan = "Consider It Done." |
| Website | http://www.ur.com |
Founded in 1997 by eight entrepreneurs, United Rentals, Inc. is the largest equipment rental company in the world, with more than 700 rental locations throughout the United States, Canada, and Mexico. Their diverse customer base includes construction and industrial companies, utilities, municipalities, and homeowners.
The company is comprised of 4 main divisions: General Rentals, Aerial, HVAC/Pump & Power, and Trench Safety. While the general rental branches are the most prolific and yielding for the company, the other divisions are increasingly a larger portion of United's revenue.
The company is a publicly traded company located in Greenwich, Connecticut, listed under the New York Stock Exchange symbol, URI.
[edit] SEC Investigation
In 2004, the United States Securities and Exchange Commission announced it was conducting an inquiry into the accounting records of the company. While exhonerated from any misdoings, United Rentals did have to recalculate its earnings for the fiscal years, 2003-2004.
[edit] Business Outlook and Transformation
In general, recent U.S.contractors have increasingly relied on rentals of equipment rather than owning or leasing, as had been the case in the past. United Rentals, resultantly, is poised to benefit tremendously from this shift given its current market share. Nonetheless, URI seeks to improve its overall business model and, subsequently, has undertaken new initiatives to achieve this goal:
On December 26, 2006 United Rentals announced the sale of their Highway Technology division to HTS Acquisition, Inc., an entity newly-formed by affiliates of private equity investors Wynnchurch Capital Partners and Oak Hill Special Opportunities Fund, L.P.
On April 10, 2007 United Rentals announced that the board of directors would be exploring strategic alternatives for the entity, including a potential sale of the company. Also announced, Wayland Hicks, CEO, will be retiring in Summer 2007. Michael Kneeland is now the acting CEO.
On July 23, 2007 United Rentals announced a definitive agreement to sell the company to Cerberus Capital Management in a transaction valued at approximately $6.6 billion, including the assumption of approximately $2.6 billion in debt obligations. The board of directors of United Rentals has approved the merger agreement and has recommended the approval of the transaction by United Rentals' stockholders. In anticipation of the merger United Rentals embarked on a series of restructuring moves which included department closures and layoffs.
On Nov 15, 2007 United Rentals announced that Cerberus Capital Management, L.P. informed it that Cerberus is not prepared to proceed with the purchase of United Rentals on the terms set forth in its merger agreement, dated July 22, 2007. The Company noted that Cerberus has specifically confirmed that there has not been a material adverse change at United Rentals.
