United Rentals Inc. said Monday it agreed to pay $2 billion in cash for the assets of family-owned Ahern Rentals Inc. The board of directors of United Rentals has approved the deal, which is expected to close by the end of 2022. The acquisition values 2,100-employee Ahern Rentals at about 6.5 times its $310 million adjusted earnings before interest, taxes, depreciation and amortization of $310 million and about 2.3 times its $887 million in revenue, both for the 12 months ended Sept. 30. United Rentals said it will pause its $1.25 billion stock purchase program during the early stages of its Ahern integration. For its part, Ahern Rentals agreed to the deal after it terminated its exchange offer of its 7.38% second priority senior secured notes in August. Shares of United Rentals fell 1.2% in premarket trades. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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