On May 13th, RSC Holdings, one of the largest equipment rental providers in North America, announced that the company has entered into an agreement to purchase the operations and certain operating assets of American Equipment Rentals ("American").
American, based in Providence, RI, is a leading provider of aerial equipment, forklifts and other rental equipment serving commercial construction contractors in Providence, RI, Woburn, MA and New Britain, CT. American is one of the largest independent aerial equipment rental companies in New England with annual revenues approximating $19 million. Nearly 90% are rental revenues.
RSC President and Chief Executive Officer, Erik Olsson commented: "The addition of American is a key initial step in building a solid presence in New England. American, as an established business with solid, long-standing customer relationships and a tenured sales force and excellent leadership, represents an ideal platform for expanding RSC's best-in-class customer service capabilities into this market. We look forward to continuing to deliver outstanding value to customers in New England."
Sellers are FST Equipment Rentals, LLC and AER Holding LLC, and details of the transaction, which is expected to close early in the third quarter of 2008, were not disclosed. The acquisition is expected to be neutral to RSC's earnings per share in 2008 and increase modestly in 2009.