Cerberus Capital Management is planning to add construction-equipment rentals via a $6.6 billion takeover of United Rentals to its pair of auto-rental companies, Forbes Magazine reports.
Under a friendly takeover deal, United Rentals stockholders are to receive $34.50 in cash for each common share that they hold. Cerberus also will assume $2.6 billion in debt.
The U.S. equipment rental industry has been growing at a compound annual rate of more than 9 percent since 1990, to about $31 billion in 2005. As Standard & Poor's notes, long-term growth is likely benefiting from a trend on the part of customers to rent, rather than own, equipment.
According to Forbes, United Rentals offers more than 20,000 classes of rental equipment, including general construction and industrial equipment, traffic control equipment and general tools and light equipment.
Cerberus also owns a stake in Vanguard Car Rental Holdings.