The world’s largest construction equipment rental company, United Rentals, will acquire equipment chain Neff Corporation for $1.3bn.
The deal improves upon H&E Equipment Services’ $1.2bn bid for Neff, which was announced last month.
Neff will receive $25 per share in cash from United Rentals, a 27% increase on Neff’s stock price before H&E Equipment Services’ bid.
United Rentals has paid H&E a termination fee of $13.2m on behalf of Neff.
Michael Kneeland, president of United Rentals, said: "The acquisition of Neff is a significant opportunity for us to augment long-term returns for our investors, and build value for our customers and employees."
In 2017 Neff is expected to generate $207m of adjusted earnings before interest, tax, depreciation and amortization at a 49.5% margin on $419m of total revenue.
Neff is based in Miami, Florida, and employs 1,200 staff over its 69 branches.
Image courtesy of United Rentals
