General Finance Overview and Growth Track Record
Transaction highlights
URI acquiring a leading Portable Storage & Mobile Offices provider with LTM December 2020 revenue of $346M and
Adjusted EBITDA of $94M (1)
Strategic
Overview
Consistent with United Rentals' strategy of investing in Specialty solutions:
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
- 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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