Shares in United Rentals (URI) climbed to a record peak on Monday after the equipment rental company said over the weekend it has signed an agreement to acquire specialty pump rental firm National Pump in a $780 million cash-and-stock transaction.
URI was up last up 4.1% at $92.11 with the session and record peak at $92.79. The stock now has 52-week range of $44.85 to $92.79.
After the acquisition closes National Pump will become part of the United Rentals Specialty division.
The transaction includes the acquisition of general rental business GulfCo and the payment of $765 million in cash and $15 million in stock. It is expected to be accretive to the company’s free cash flow and earnings per share in 2014.
As a result of the acquisition, the company updated its 2014 revenue guidance to between $5.45 billion and $5.65 billion and its adjusted EBITDA to a range of $2.55 billion to $2.65 billion. Analysts are expecting revenue of $5.4 billion.
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