United Closes RDO, Launches E-Rentals

March 1, 2000
GREENWICH, Conn.- United Rentals has finalized its acquisition of Cottonwood, Ariz.-based RDO Rentals, which has 12 locations in Arizona, southern California

GREENWICH, Conn.- United Rentals has finalized its acquisition of Cottonwood, Ariz.-based RDO Rentals, which has 12 locations in Arizona, southern California and southern Nevada.

Although terms of the transaction were not disclosed, sources estimate that United paid about $45 million to acquire the company. RDO Rentals grossed about $27.6 million in revenue for the 12-month period ended Oct. 31, 1999. Parent company RDO Equipment is expected to use funds from the sale to pay down debt in the near term, and make future acquisitions of Deere agricultural and construction dealers.

In other United news, the company launched its new E-Rental Store last month, providing customers the opportunity to arrange rentals electronically at any of its 687 branches. Users will be able to browse through regional listings of used equipment offered for sale and access equipment specifications, photos and operating histories. Customers can also access reports on their business activity with United, including summaries of what equipment they have out on rent, their rental rates and the status of their account.