GREENWICH, Conn. (AP) -- United Rentals completed its acquisition of rival RSC Holdings Inc. in a cash and stock deal worth about $2.53 billion, the company said Monday.
Under the terms of the deal announced in December, RSC shareholders will receive $10.80 in cash and 0.2783 of a share of United Rentals common stock for each of their RSC shares.
Based on United's Friday closing price, the deal values Scottsdale, Ariz.-based RSC at $23.83 per share, or a total of $2.53 billion. The companies valued the deal at $4.2 billion, including $2.3 billion of debt.
Under the terms of the agreement, Jenne Britell remains chairman of United's board and three of RSC's independent directors joined the board, effective Monday.
In connection with the closing, United's board approved a new $200 million stock buyback program. The program has no expiration date, but United said it expects that all of the shares will be repurchased with 18 months of closing.
Shares of United Rentals Inc., based in Greenwich, Conn., fell 77 cents to $46.05 in afternoon trading.