Heavyweight Deal: United Rentals Buys Yak Access In A Billion-Dollar Move To Reinforce Its Specialty Business
Portfolio Pulse from Shivani Kumaresan
United Rentals, Inc (NYSE:URI) is set to acquire Yak Access, LLC, Yak Mat, LLC, and New South Access & Environmental Solutions, LLC from Platinum Equity for approximately $1.1 billion in cash. This acquisition aims to enhance United Rentals' Specialty business by adding scale in the North American matting industry. Yak, with a fleet of around 600,000 mats, generated $171 million of adjusted EBITDA on $353 million of adjusted revenue for the year ended December 31, 2023. The deal is expected to be immediately accretive to United Rentals' EPS and FCF, funded through new debt and existing ABL facility capacity. The transaction, expected to close in Q1 2024, is anticipated to bring about $7 million in cost synergies by the end of the second year post-closing.
March 04, 2024 | 1:48 pm
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United Rentals' acquisition of Yak Access for $1.1 billion aims to strengthen its Specialty business and is expected to be accretive to EPS and FCF immediately. The deal, funded through new debt and existing capacity, is anticipated to close in Q1 2024.
The acquisition of Yak Access by United Rentals is a strategic move to expand its Specialty business, indicating a positive outlook for URI's future growth and profitability. The immediate accretion to EPS and FCF, along with the expected cost synergies, suggest a positive short-term impact on URI's stock price. The funding strategy through new debt and existing capacity underlines the company's financial planning to support this acquisition without significantly straining its liquidity.
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