Utility Contractor

SEP-OCT 2018

As the official magazine of NUCA, Utility Contractor presents the latest information affecting every aspect of the utility construction industry, including technological advancements, safety issues, legislative developments and instructional advice.

Issue link: http://digital.utilitycontractoronline.com/i/1031723

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Page 11 of 43

12 Utility Contractor | September/October 2018 GROUNDBREAKING NEWS United Rentals Inc. announced July 31 that it has completed its previously announced acquisition of BakerCorp International Holdings Inc. for a total purchase price of approximately $715 million. The transaction was funded through a combination of cash and available capacity on the company's senior secured asset-based revolving credit facility. BakerCorp is a leading multinational provider of tank, pump, filtration and trench shoring rental solutions for a broad range of industrial and construction applications. With the acquisition, United Rentals substantially augments its bundled solutions for fluid storage, transfer and treatment; expands its strategic account base; and gains a significant opportunity to increase revenue and enhance customer service by cross- selling to its broader customer base. The BakerCorp acquisition added approximately 25,000 units of fleet, 46 branches in North America and 11 in Europe, and approximately 950 employees to United Rentals' footprint. For the trailing 12 months ended May 31, 2018, BakerCorp generated $79 million of adjusted EBITDA at a 26.9% margin on $295 million of total revenue. Michael Kneeland, chief executive officer of United Rentals, said, "The Baker acquisition is a highly strategic move on our part to grow our Specialty segment. Our expanded expertise in fluid solutions will benefit our customers and build long-term value for our investors. Today we welcomed almost a thousand top-notch colleagues as the first step in the integration." The company has updated its 2018 guidance solely to reflect the acquisition of BakerCorp. The new guidance includes $140 million of total revenue, $40 million of adjusted EBITDA and $50 million of gross capital spending, reflecting the anticipated impact of the acquisition on the company's full-year results. United Rentals Completes Acquisition of BakerCorp A strong dealer support network combined with a safe and reliable product are yielding satisfied customers and increased revenue for Texas First Rentals, sister company to Holt Cat, one of the largest Caterpillar dealers in the United States. Texas First offers a line of Caterpillar, plus equipment from Genie, JLG, Sullair, Wacker, LayMor and Vermeer. When they were looking to add vacuum excavation equipment, Texas First turned to Vac-Tron Equipment. Challenge: Finding the perfect vacuum excavator and industrial vacuum equipment to add to the rental fleet. "The most important factors in determining what fleet we bought was the relationship we have with our dealer support network and the fact that we can utilize one model and maintain a commonality of parts," said Colin Martin, District Manager of Texas First. Solution: Vac-Tron Equipment vacuum excavators and industrial vacs. "We started buying the Vac-Tron machine when we initially started the company back in 2015. It's a product that appears across all our stores, we have about 15 stores across the state of Texas," said Martin. Michael Rutledge, Outside Sales Rep added, "The best advantage for us to be carrying Vac-Tron is our competitors don't, so we have the upper edge. So, for an outside sales rep, it's an absolute gold winner. The hydro vac makes it simpler and safer to use than the conventional excavator." Results: Satisfied customers and satisfied company owners. "I hear probably weekly that our customers are very satisfied with the product. At this current location, there are three customers that currently use these Vac-Tron's monthly, some even use them long term on a 3- to 6-month basis," says Rutledge. "I would recommend these machines to others just for the ease of use, ease of maintenance, serviceability concerns, and the return on investment," says Martin. "The rental return on investment (ROI) is how we are opening our doors everyday and closing them at the end of the day. I think this product is really making that bottom line more effective," added Rutledge. Vac-Tron Vacuum Excavators Increase Bottom Line for Texas First Rentals

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