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United Rentals (URI) Buys General Finance for $19 Per Share

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United Rentals, Inc.’s (URI - Free Report) subsidiary, UR Merger Sub VI Corporation (Merger Sub) has completed the formerly-decided agreement to purchase General Finance Corporation (“GFN”). Per the tender offer, United Rentals paid $19 per share to General Finance, in cash, without interest, less any applicable withholding of taxes.

General Finance — which operates as Pac-Van and Container King in the United States and Canada, and as Royal Wolf in Australia and New Zealand — is a leading provider of mobile storage as well as modular office space.

Continental Stock Transfer & Trust Company, LLC — the Depositary — suggested that all the 27,625,450 shares, represents nearly 91.4% of General Finance’s commons stock, had been tendered into and not validly withdrawn from the Offer.

Furthermore, another 156,352 shares or 0.5% of General Finance’s stock had been tendered by the advice of the depositary.

Consequently, after the successful completion of the tender offer, Merger Sub will have the exclusive ownership of General Finance. Following the merger, all shares of General Finance will be redeemed according to pre-determined conditions. United Rentals is expected to benefit from General Finance’s expertise in different markets.

United Rentals’ Expansion Driving Growth

United Rentals is expanding geographic borders and product portfolio through acquisitions and joint ventures. As the largest equipment rental company in the world, United Rentals enjoys strong brand recognition, which enables it to draw customers and build customer loyalty. The company offers approximately 4,000 classes of rental equipment for rent on an hourly, daily, weekly or monthly basis.

Shares of United Rentals have gained 40.6% so far this year compared with the Zacks Building Products - Miscellaneous industry’s 16% growth. The upside is likely to continue on prudent investments in fleet, accretive acquisitions and robust market demand.

Zacks Rank & Other Key Picks

Currently, United Rentals carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the same industry include Masco Corporation (MAS - Free Report) , PGT, Inc. and TopBuild Corp. (BLD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Masco, PGT and TopBuild’s earnings for 2021 are expected to rise 15.4%, 27.8% and 38.2%, respectively.

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