United Rentals
Encyclopedia
Founded in 1997 by Bradley S. Jacobs and seven others, United Rentals, Inc. is the largest equipment rental company in the world, with more than 600 rental locations throughout the United States
, Canada
, and Mexico
. Their diverse customer base includes construction and industrial companies, utilities, municipalities, and homeowners.
United Rentals is headed up by Michael J. Kneeland (President & CEO) and William B. Plummer (EVP & CFO). Total annual revenue in 2008 was $3.3 billion, including $2.5 billion in equipment rental revenue. United Rentals also holds a 9 percent share of construction and industrial equipment rentals in North America. Having the largest fleet of rental equipment in the world, United Rentals employs more than 8,600 employees, servicing over 300 metropolitans, 49 states, ten Canadian provinces and Mexico.
The company has four main divisions: General Rentals, Aerial, HVAC/Pump & Power, and Trench Safety. While the general rental branches are the most prolific and yielding for the company, the other divisions are increasingly a larger portion of United's revenue.
Extreme Makeover: Home Edition
United Rentals is the rental equipment provider for the television show, Extreme Makeover: Home Edition
, offering construction equipment rentals to assist volunteers in building a house within seven days. The Emmy-award-winning show relies on support in the form of crew workers, volunteers and training from United Rentals’ branches across the country, as well as over 2,000 pieces of donated rental equipment.
General Rentals: United Rentals offers construction and industrial equipment rentals, as well as homeowner equipment and tool rentals. This also includes aerial equipment, and United Rentals offers North America’s largest rental fleet of aerial work platforms.
Trench Safety, Pump and Power: This segment includes specialty equipment rentals for underground construction, temporary power, climate control and training services. Primary customers for this include infrastructure contractors, industrial companies, municipalities and the military. United Rentals provides customers with quality rental equipment and training to ensure safety.
announced it was conducting an inquiry into the accounting records of the company. While exonerated from any misdoings, United Rentals did have to recalculate its earnings for the fiscal years, 2003-2004.
pleaded guilty and United Rentals lobbyists James Hirni
and Todd Boulanger
were named for defrauding the government on behalf of United Rentals in 2003. Boulanger and Hirni gave Blackann and a House staffer an all-expenses-paid trip to Game 1 of the 2003 World Series in exchange for amendments to the Federal Highway Bill that favored United Rentals. At the time, Hirni and Boulanger were lobbyists in Jack Abramoff
's group at Greenberg Traurig
.
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In general, recent U.S.contractors have increasingly relied on rentals of equipment rather than owning or leasing, as had been the case in the past. United Rentals, resultantly, is poised to benefit tremendously from this shift given its current market share. Nonetheless, URI seeks to improve its overall business model and, subsequently, has undertaken new initiatives to achieve this goal:
On December 26, 2006 United Rentals announced the sale of their Highway Technology division to HTS Acquisition, Inc., an entity newly-formed by affiliates of private equity investors Wynnchurch Capital Partners and Oak Hill Special Opportunities Fund, L.P.
On April 10, 2007 United Rentals announced that the board of directors would be exploring strategic alternatives for the entity, including a potential sale of the company. It was also announced that Wayland Hicks, CEO, would be retiring in Summer 2007. Michael Kneeland is now the acting CEO.
On July 23, 2007 United Rentals announced a definitive agreement to sell the company to Cerberus Capital Management
in a transaction valued at approximately $6.6 billion, including the assumption of approximately $2.6 billion in debt obligations. The board of directors of United Rentals approved the merger agreement and had recommended the approval of the transaction by United Rentals' stockholders. In anticipation of the merger, United Rentals embarked on a series of restructuring moves which included department closures and layoffs.
On November 15, 2007 United Rentals announced that Cerberus Capital Management, L.P. informed it that Cerberus was not prepared to proceed with the purchase of United Rentals on the terms set forth in its merger agreement, dated July 22, 2007. The company noted that Cerberus had specifically confirmed that there had not been a material adverse change at United Rentals.
On December 21, 2007 a Delaware Chancery Court ruling denied United Rentals attempt to force Cerberus to follow through on the takeover bid. However, the court did order Cerberus to pay a $100 million termination fee.
URI rents over 2,900 different classes of equipment and holds about 10% of the equipment rental industry by revenue, the biggest share of any company in its segment.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, and Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
. Their diverse customer base includes construction and industrial companies, utilities, municipalities, and homeowners.
United Rentals is headed up by Michael J. Kneeland (President & CEO) and William B. Plummer (EVP & CFO). Total annual revenue in 2008 was $3.3 billion, including $2.5 billion in equipment rental revenue. United Rentals also holds a 9 percent share of construction and industrial equipment rentals in North America. Having the largest fleet of rental equipment in the world, United Rentals employs more than 8,600 employees, servicing over 300 metropolitans, 49 states, ten Canadian provinces and Mexico.
The company has four main divisions: General Rentals, Aerial, HVAC/Pump & Power, and Trench Safety. While the general rental branches are the most prolific and yielding for the company, the other divisions are increasingly a larger portion of United's revenue.
Extreme Makeover: Home EditionExtreme Makeover: Home EditionExtreme Makeover: Home Edition is a reality television series providing home renovations for less fortunate families and community schools etc...
Partnership
United Rentals is the rental equipment provider for the television show, Extreme Makeover: Home EditionExtreme Makeover: Home Edition
Extreme Makeover: Home Edition is a reality television series providing home renovations for less fortunate families and community schools etc...
, offering construction equipment rentals to assist volunteers in building a house within seven days. The Emmy-award-winning show relies on support in the form of crew workers, volunteers and training from United Rentals’ branches across the country, as well as over 2,000 pieces of donated rental equipment.
Business Operations
United Rentals serves its customers through the operation of two business segments:General Rentals: United Rentals offers construction and industrial equipment rentals, as well as homeowner equipment and tool rentals. This also includes aerial equipment, and United Rentals offers North America’s largest rental fleet of aerial work platforms.
Trench Safety, Pump and Power: This segment includes specialty equipment rentals for underground construction, temporary power, climate control and training services. Primary customers for this include infrastructure contractors, industrial companies, municipalities and the military. United Rentals provides customers with quality rental equipment and training to ensure safety.
SEC investigation
In 2004, the United States Securities and Exchange CommissionUnited States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
announced it was conducting an inquiry into the accounting records of the company. While exonerated from any misdoings, United Rentals did have to recalculate its earnings for the fiscal years, 2003-2004.
Abramoff scandal
In 2008, former Senate staffer Trevor BlackannTrevor Blackann
Trevor Blackann is a former American lobbyist who pleaded guilty in the Jack Abramoff scandal.Blackann began his political career as a staffer for Roy Blunt, and subsequently Kit Bond....
pleaded guilty and United Rentals lobbyists James Hirni
James Hirni
James F. Hirni is a lobbyist who was convicted for bribing Senate Staff aides in return for favorable amendments to federal legislation. A former aide to Sen. Tim Hutchinson , he joined the lobbying firm Sonnenschein, Nath & Rosenthal, and then became a member of "Team Abramoff" at Greenberg Traurig...
and Todd Boulanger
Todd Boulanger
Todd Boulanger is an American lobbyist. He was senior vice president of Cassidy & Associates and was a figure in the Jack Abramoff scandal.-Background:...
were named for defrauding the government on behalf of United Rentals in 2003. Boulanger and Hirni gave Blackann and a House staffer an all-expenses-paid trip to Game 1 of the 2003 World Series in exchange for amendments to the Federal Highway Bill that favored United Rentals. At the time, Hirni and Boulanger were lobbyists in Jack Abramoff
Jack Abramoff
Jack Abramoff is an American former lobbyist and businessman. Convicted in 2006 of mail fraud and conspiracy, he was at the heart of an extensive corruption investigation that led to the conviction of White House officials J. Steven Griles and David Safavian, U.S. Representative Bob Ney, and nine...
's group at Greenberg Traurig
Greenberg Traurig
Greenberg Traurig LLP and Greenberg Traurig PA is an international law firm based in Miami, Florida.The firm has approximately 1,800 attorneys and governmental professionals in 32 locations in the United States, Europe and Asia. Its founding office is in Miami, Florida with its largest office in...
.
Business outlook and transformation
On December 26, 2006 United Rentals announced the sale of their Highway Technology division to HTS Acquisition, Inc., an entity newly-formed by affiliates of private equity investors Wynnchurch Capital Partners and Oak Hill Special Opportunities Fund, L.P.
On April 10, 2007 United Rentals announced that the board of directors would be exploring strategic alternatives for the entity, including a potential sale of the company. It was also announced that Wayland Hicks, CEO, would be retiring in Summer 2007. Michael Kneeland is now the acting CEO.
On July 23, 2007 United Rentals announced a definitive agreement to sell the company to Cerberus Capital Management
Cerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
in a transaction valued at approximately $6.6 billion, including the assumption of approximately $2.6 billion in debt obligations. The board of directors of United Rentals approved the merger agreement and had recommended the approval of the transaction by United Rentals' stockholders. In anticipation of the merger, United Rentals embarked on a series of restructuring moves which included department closures and layoffs.
On November 15, 2007 United Rentals announced that Cerberus Capital Management, L.P. informed it that Cerberus was not prepared to proceed with the purchase of United Rentals on the terms set forth in its merger agreement, dated July 22, 2007. The company noted that Cerberus had specifically confirmed that there had not been a material adverse change at United Rentals.
On December 21, 2007 a Delaware Chancery Court ruling denied United Rentals attempt to force Cerberus to follow through on the takeover bid. However, the court did order Cerberus to pay a $100 million termination fee.
URI rents over 2,900 different classes of equipment and holds about 10% of the equipment rental industry by revenue, the biggest share of any company in its segment.
External links
- United Rentals Equipment Rental Website
- United Rentals profile at Wikinvest