TEL AVIV (MarketWatch) --
RSC Holdings Inc., the Scottsdale, Ariz., provider of rental equipment, agreed to be acquired for $18 a share of cash and stock, or $1.9 billion, by
United Rentals Inc. URI, the Greenwich, Conn., equipment-rental network, also will assume $2.3 billion of net debt, the companies said in a Friday statement. URI has agreed to pay $10.80 cash and 0.2783 share for each share of RSC. The deal price is a 58% premium to RSC's closing price Thursday at $11.37 a share. Both companies' boards have approved the terms, and the Stamford, Conn., investment firm Oak Hill Capital Partners, which owns 33.5% of RSC, will vote its stake for the deal, they said. The combined company will have a lower cost base and a "less volatile revenue profile to better position the company through all phases of the business cycle," RSC and
United said. They see more than $200 million of potential cost savings. And within a year after the deal closes, United Rentals said it would buy back as much as $200 million of stock. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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