Greenwich, Conn. — Shareholders of United Rentals approved on Oct. 19 a proposed $6.6 billion buyout by an affiliate of private equity firm Cerberus Capital Management LP. Nearly 99.8 percent of the stockholders approved the deal that will pay holders of United's common stock $34.50 in cash for each share held.
The company expects the transaction, which includes the assumption of about $2.6 billion in debt, to close this month.
Based in Greenwich, Conn., United Rentals, No. 1 on the RER 100, revolutionized the rental industry when it burst upon the rental scene in September 1997. As the industry's largest consolidator, United Rentals acquired hundreds of companies. In 2006, the company grossed $2.53 billion in rental volume and $3.64 billion in total volume.
Bank of America, Credit Suisse, Morgan Stanley and Lehman Brothers have agreed to provide debt financing for the merger deal. UPS Investment Bank was the financial advisor to United Rentals, and Simpson Thacher & Bartlett was legal adviser. Lowenstein Sandler PC and Schulte, Roth & Zabel advised Cerberus on legal matters.