1. | Why is United Rentals acquiring RSC Holdings? | ||
While our company is not dependent upon acquisitions to meet its financial objectives, we do believe in integrating good people and effective practices when it serves our growth. We are combining two respected businesses to create a new, best-in-class equipment rental company. Were taking this step from a position of strength, as part of the ongoing transformation of our company, and at a time when we believe that our expanded operations will benefit from the construction recovery. | |||
2. | Who is RSC? | ||
RSC is highly respected as one of the largest equipment rental providers in North America. They are well regarded for having a well-managed fleet, extensive customer support resources and a strong geographic presence. Currently, RSC services the industrial and construction markets with $2.7 billion of equipment and approximately 440 rental locations. They primarily operate in the United States, but have a presence in Canada as well. | |||
3. | Why is RSC a good fit for United Rentals? | ||
RSC shares our commitment to customer service and quality operations. This deal will bring together the best talent in our industry and will create a customer service platform that will benefit all of our customers. Our combined organization will have a strong presence across North America, with nearly 1,000 branches in the U.S. and Canada and the largest, most versatile fleet in the industry. Equally as important, we will be integrating the best practices from RSCs operations with our own best practices to create an unparalleled organization. |
4. | What are the terms of the transaction? | ||
United Rentals is acquiring RSC in a cash-and-stock transaction currently valued at $18.00 per share, or a total enterprise value of $4.2 billion, including $2.3 billion of net debt. The deal is expected to close in the first half of 2012, after receiving the necessary approvals. | |||
5. | What will the new company be called and where will it be headquartered? | ||
There will be no change to United Rentals name or headquarters. | |||
6. | Who will be the CEO of the combined company? | ||
Michael Kneeland will remain as President and CEO. | |||
7. | What does this mean for me as a United Rentals employee? | ||
There will be no immediate changes to your employment and responsibilities. From an operations standpoint, it will be business as usual for us. The top priority on both sides is to continue to provide customers with consistent, seamless support of the highest quality. Our employees will play a critical role in ensuring the success of this venture. | |||
At this early date, there is no timeline for future decisions on how the merging of the operations may affect individual employees or branches. As soon as we have a timeline, well let you know. We have a proven track record of successfully integrating businesses by identifying the best practices and talents of the companies we acquire. Obviously there is more overlap of operations in some areas than others, and those situations will be looked at carefully on a one-by-one basis. Certain areas may have no changes at all. You can be assured that we will not make any wholesale decisions. United Rentals values each of its employees and will use the fairest possible process in cases where selections must be made. | |||
Ultimately, we believe that the merger will translate into significant opportunities for employees of both companies. | |||
8. | Will there be changes to my salary, incentive/commission/bonus opportunities and benefits? | ||
Your salary and benefits plans will not change at all through December 31, 2012. You will receive the same benefits you elected for 2012. We still intend to do a merit increase in 2012. |
2
For our salespeople, there will be no change to the incentive/commission/bonus structure we originally intended for 2012, although the sales opportunities themselves may change during the course of the year. The 2012 incentive/commission/bonus structure will be communicated in early January, as it is each year. | |||
We understand that your compensation, healthcare and other employee benefits provide security to you and your family, and we take that responsibility seriously. Both United Rentals and RSC provide strong and very similar compensation, healthcare and employee benefit programs. Even so, we know that small differences can have a big impact, and we plan to be very careful in selecting the best programs. Well be sure to communicate with you regularly on this topic so that you are well aware of our plans for the future. | |||
9. | What should I do if I run into a situation where RSC is pursuing the same customer I am? | ||
For now, nothing changes it is business as usual in the field. Remember, the deal hasnt closed yet. You should handle sales calls, quotations and other customer situations the same way you handle them now, according to the same objectives for rate management, fleet management, customer service and margin improvement. Our companys strategy for capturing business is still exactly the same. The announcement has no impact on field operations at this time. | |||
10. | Will I be kept informed as things move forward? | ||
Yes, definitely. United Rentals has always maintained a culture of openness, with strong communication channels in place. Thats not going to change. If anything, these channels will be used more frequently in anticipation of our expanded employee base. | |||
Please bear in mind that change, by nature, is a fluid process and its natural for you to have questions. In some cases, we may not be able to share information immediately; at other times, we simply may not know the answers yet. But we will always be listening, and well be in touch as often as possible. | |||
11. | Who should I contact if I have further questions? | ||
Please contact your HR manager with any questions you may have. |
3
4
5