United Rentals buys Neff Rental for $1.3 billion

United Rentals Inc., a Stamford-headquartered construction equipment rental company, has announced its acquisition of Neff Rental, a Miami-based equipment rental company, in a $25 per share in cash transaction totaling approximately $1.3 billion.

According to a statement released by the companies, the transaction is expected to close in the fourth quarter. Prior to approving the deal, Neff Rental terminated its previously announced merger agreement with H&E Equipment Services Inc., with United Rentals paying H&E a termination fee of approximately $13.2 million.

“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,” said Michael Kneeland, president and CEO of United Rentals. “We expect this transaction to be accretive to both our financial performance and customer-facing operations, with an important cross-selling component.”