CHARLOTTE, N.C., and FORT LAUDERDALE, Fla. (July 19, 2006) – Sunbelt Rentals Inc., a subsidiary of Ashtead Group plc, and NationsRent Companies Inc. announced an agreement today under which NationsRent will be merged into Sunbelt to form the third-largest equipment rental company serving the U.S. market.
Sunbelt Rentals, based in Charlotte, N.C., will pay approximately $1 billion in cash, assumed debt and bond redemptions to complete the transaction, which is expected to close in late August 2006. After the acquisition, the combined companies will operate 477 outlets in 35 states, employ over 7,000, with combined 2005 revenues of approximately $1.4 billion.
“We are excited to announce the proposed merger of Sunbelt Rentals and NationsRent. This will bring together two well-known brands and two well-respected companies that share a very strong focus on customer satisfaction,” said Cliff Miller, president and chief executive officer of Sunbelt Rentals. “It is fitting that the primary beneficiaries of this combination will be the customers of Sunbelt and NationsRent as well as employees who have worked so hard to build both organizations.”
Jeff Putman, NationsRent’s chief executive officer, said, "This transaction with Sunbelt represents an excellent opportunity for our employees and our stockholders. With limited geographic overlap, this combination will allow the NationsRent employees to continue to serve our customers and an opportunity for career growth in one of the largest and most successful companies in our industry. For the stockholders of NationsRent, the transaction will allow them to realize an attractive return generated by the growth of our company over the past three years."
The combination of NationsRent and Sunbelt Rentals creates potential synergies that promise to benefit customers and employees of both companies, Miller said, citing the following compelling factors:
- NationsRent’s complementary footprint means very little geographic duplication of existing stores, so the acquisition will immediately extend the combined companies reach to eight additional states for a market presence in 35 states and the District of Columbia.
- Lack of duplication also means growth opportunities for branch network employees of both NationsRent and Sunbelt as the combined company works to serve a greatly expanded customer base.
- Specialty operations of the two companies also are complementary, thus allowing the combined companies to expand the breadth and width of product and service offerings. These include NationsRent’s alliance with Lowe’s Home Improvement Stores and an expanding dealership network, as well as Sunbelt’s scaffold services business and pump and power operations.
- NationsRent’s relatively new equipment fleet bolsters Sunbelt’s already significant investment in fleet replacement and growth. The combined companies will feature a rental fleet asset base of greater than $2 billion at first cost.
Support operations will mainly be consolidated at Sunbelt’s Charlotte headquarters and staffing will be evaluated to reduce duplication and improve efficiency. However, the significant growth of Sunbelt’s business volume resulting from the acquisition will also create many new opportunities. We are pleased to announce that two of the senior executives at NationsRent, Bryan Rich and Charles Snyder, have agreed to join the Sunbelt executive management team.
The acquisition is expected to close by late August 2006, pending approvals from shareholders of Ashtead Group plc and appropriate regulatory agencies.
About Sunbelt Rentals
Sunbelt Rentals, a wholly-owned subsidiary of Ashtead Group plc, is the fourth largest equipment rental company in the U.S. as listed by the Rental Equipment Register. Sunbelt is based in Charlotte, N.C., and provides equipment rental solutions for the industrial, construction, and municipal markets, plus the DIY markets, from its network of 209 branches in 27 states. Its extensive equipment fleet includes a wide range of general construction and industrial equipment, and is further broadened by specialty businesses serving the Pump, Power, Trench Shoring and Scaffold markets. For more information, visit www.sunbeltrentals.com.
About NationsRent
NationsRent is headquartered in Fort Lauderdale, Florida, and is one of the largest full service equipment companies in the United States, operating 268 locations (including 100 at Lowe’s Home Improvement locations) in 26 states. NationsRent specializes in rentals and also sells new and used equipment with related merchandise, parts and supplies, and provides maintenance and repair services. NationsRent offers a broad range of high-quality construction equipment with a focus on superior customer service at affordable prices with convenient locations in major metropolitan markets throughout the United States. More information is available at www.nationsrent.com.
All statements other than statements of historical fact included in this news release regarding NationsRent’s financial condition, business strategy, plans, anticipated growth rates, and objectives of management of NationsRent for future operations are forward-looking statements. Forward-looking statements are intended to provide management’s current expectations or plans for the future operating and financial performance of NationsRent based upon information currently available and assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plans,” “strategy,” “outlook”, “project,” and other words of similar meaning in connection with a discussion of future operating or financial performance. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors that include, but are not limited to, risks associated with NationsRent’s high degree of leverage, management’s ability to successfully execute its business strategy, competition in the equipment rental industry, the economy in general or construction spending in particular, and other risks and uncertainties described in NationsRent’s filings with the Securities and Exchange Commission. NationsRent has no current intention or obligation to update these forward-looking statements, even if its situation or expectations change in the future.