Cerberus Buying United Rentals

Greenwich, Conn.— United Rentals announced that it has signed a definitive merger agreement to be acquired by affiliates of Cerberus Capital Management in a transaction valued at about $6.6 billion, including the assumption of $2.6 billion in debt obligations.

Under terms of the agreement,

United Rentals stockholders will receive $34.50 in cash for each share of United Rentals common stock they hold. The purchase price per share represents a 25-percent premium over the company's closing share price of $27.55 prior to the company's announcement on April 10 that it had commenced a process to explore a broad range of strategic alternatives.

"We're pleased that our strategic alternatives process has resulted in this favorable agreement for our shareholders," said Bradley Jacobs, chairman of United Rentals. "This transaction is a credit to the thousands of United Rentals employees who have created unmatched value in our industry. A decade ago we started United Rentals with little more than a concept and achieved industry leadership in just 13 months. Today we remain the preeminent equipment rental company in the world."

The board of directors of United Rentals has approved the merger agreement and has recommended the approval of the transaction by United Rentals stockholders.

Completion of the transaction is subject to customary closing conditions, including approval of the transaction by United Rentals' stockholders and regulatory review. Stockholders will be asked to vote on the proposed transaction at a special meeting that will be held on a date to be announced. Holders of the company's preferred stock, including affiliates of Apollo Management, which represent about 18 percent of the voting power of the capital stock of United Rentals, have agreed to vote their shares in favor of the merger.