The parent of Indianapolis-based Pac-Van Inc. has been acquired by the largest equipment-rental company in the world in a deal valued at almost $1 billion, the companies announced Tuesday.
Stamford, Connecticut-based United Rentals Inc. paid $19 per share for Pasadena, California-based General Finance Corp.—which has owned Pac-Van since 2008—and assumed $400 million in debt.
Pac-Van, which sells and leases mobile storage containers and vans, portable offices, modular buildings and liquid storage tanks, accounted for nearly 60% of General Finance’s annual revenue in fiscal 2020.
In addition to Pac-Van, General Finance owns Container King, Lone Star Tank Rental Inc., Royal Wolf and Southern Frac LLC.
Pac-Van saw an 8% year-over-year increase in leasing revenue in fiscal 2020 and an 11% increase in adjusted earnings.
United Rentals has a network of 1,156 rental locations in North America and 11 in Europe. In North America, it operates in 49 states and every Canadian province, with more than 18,000 employees. Its customers include construction and industrial customers, utilities, municipalities, homeowners and others.
“This is an acquisition with strong strategic and financial merits, timed to serve the increasing demand in our end markets,” United Rentals CEO Matthew Flannery said in written comments. “We’re delighted to welcome our new customers and team members to United Rentals. It expands our growth capacity with the addition of leading mobile storage and modular office solutions, including over 900 employees with complementary expertise. As customers turn to us for the equipment they need, we’re giving them the industry’s most complete range of solutions to help them succeed.”
William Claymon—along with his sons Brent, Matthew and Scott—started Pac-Van Inc. in 1993 and built it into one of the area’s fastest-growing companies.
Pac-Van made the Inc. 500 list of fastest-growing companies several times and ended 2005 with revenue of $51 million and 180 employees. California-based Mobile Office Acquisitions bought Pac-Van from the Claymons in August 2006. Nearly two years later, Mobile Office Acquisitions sold the company to General Finance Corp. in a deal valued at $158.8 million.
“Our combination with United Rentals—the industry leader in equipment rentals—is a strong outcome for everyone involved,” said Jody Miller, CEO of General Finance, in written remarks. “Our customers will benefit from United’s extensive solutions and geographic footprint, and our employees will have new opportunities as part of the largest rental team in the world.”