Private equity firm Cerberus Capital Management, L.P. has informed United Rentals Inc., Greenwich, CT, that it is not prepared to proceed with the purchase of the construction equipment rental outfit on the terms of its July merger agreement.
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The agreement provides for a limit of $100 million liability if the merger does not go through.
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United Rentals, in a press release, said the repudiation is unwarranted and incompatible with the covenants of the merger agreement. Having fulfilled all the closing conditions under the merger agreement, United Rentals is prepared to complete the transaction promptly.”
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United Rentals has retained a law firm to represent it in the matter.
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United Rentals, Inc. is an equipment rental company with an integrated network of 690 rental locations in 48 states, 10 Canadian provinces and one location in Mexico. The company offers for rent over 20,000 classes of rental equipment with a total original cost of $4.3 billion.