General Finance Overview
Transaction highlights
URI acquiring a leading Portable Storage & Mobile Offices provider with LTM December 2020 revenue of $346M and
Adjusted EBITDA of $94M(1)
Consistent with United Rentals' strategy of investing in Specialty solutions:
Strategic
Overview
Financial
Overview
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Augments URI's 'one stop shop' positioning and extends our differentiated capabilities to serve customers' needs
- Enhances URI's product and services offering and creates a platform for cross-sell nationwide
Leverages United Rentals' core competency in M&A integration
Highly strategic addition that expands Specialty portfolio into the ~$5B commercial mobile storage and modular space markets
Opportunity to utilize URI's technology platform to drive efficiency in operations and sales productivity
General Finance shares culture of customer focus and safety
$996M Total Enterprise Value with ~$19M NPV of tax benefits
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Purchase multiple of 10.6x LTM December 2020 Adjusted EBITDA(1), 8.8x including tax benefits and synergies
- ~$65M of estimated revenue synergies expected to be realized by year 3
~$17M of identified annual cost synergies expected to be realized by end of year 2
Long-lived acquired assets with strong unit economics drive attractive returns, offsetting impact of lower margins
The acquisition is expected to be accretive to adjusted earnings per share in 2021, with an attractive internal rate of return and NPV,
and a run-rate ROIC that exceeds cost of capital within 18 months of closing
Expected to be funded through incremental ABL draw
Net leverage ratio of 2.1x by year-end 2021
Expected to close by end of Q2 2021
1) Adjusted EBITDA is a non-GAAP financial measure. See appendix for reconciliation between General Finance's adjusted EBITDA and Net Income.
United Rentals®
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