United Rentals Inc has entered into a definitive agreement to acquire BakerCorp International Holdings Inc for approximately US$715 million in cash.
BakerCorp is a multinational provider of tank, pump, filtration and trench shoring rental solutions for a range of industrial and construction applications. The BakerCorp rental fleet consists of more than 24 000 units, including steel tanks, polyethylene tanks, roll-off boxes, pumps, pipes, hoses and fittings, filtration units, tank trailers, berms and trench shoring equipment.
The company has around 950 employees serving more than 4800 customers in North America and Europe. BakerCorp’s operations are primarily in the US and Canada, where it has 46 locations, with another 11 in France, Germany, the UK and the Netherlands.
For the trailing 12 months ended 31 May 2018, BakerCorp had total revenue of US$295 million and adjusted EBITDA of US$79 million. BakerCorp’s international operations accounted for approximately 15% of total revenue for the company’s fiscal year ended 31 January 2018.
Together, BakerCorp and United Rentals’ Pump Solutions unit will have revenue of approximately US$606 million (pro forma trailing 12 months).
“We’re very pleased to announce an agreement to acquire BakerCorp, an expert in fluid solutions and a highly regarded, customer-focused operation,” said Michael Kneeland, CEO of United Rentals. “We’re gaining a terrific team that shares our strong commitment to safety and customer service, and operations that complement our North American pump and trench offerings. This transaction will also be our company’s first experience in Europe, where BakerCorp has established an attractive, fast-growing business with significant future opportunity.”
Bob Craycraft, president and CEO of BakerCorp, said: “I’m extremely proud of what our team has built. The value we’ve delivered for our customers has created this new opportunity to be part of the largest equipment rental company in the world. The combination with United Rentals is an exciting development for the future of both our customers and employees.”
The transaction is expected to close in the third quarter of 2018.
Stamford, Connecticut-headquartered United Rentals has a network of 1002 rental locations in 49 US states and every Canadian province.