United Rentals completes $1.1bn acquisition of Yak Matting Solutions
In a significant move that marks a new chapter for industrial services and equipment rental markets, United Rentals, Inc. (NYSE: URI) has officially completed its acquisition of Yak Access, LLC, along with Yak Mat, LLC and New South Access & Environmental Solutions, LLC, collectively known as “Yak,” from Platinum Equity. The transaction, valued at approximately $1.1 billion in cash, underscores United Rentals’ strategic expansion and fortification of its service offerings. This acquisition was financed through a blend of newly issued senior unsecured notes and available capacity under United Rentals’ existing Asset-Based Lending (ABL) facility.
Yak, recognized as a leader in the North American matting industry, boasts a substantial fleet of around 600,000 mats, including hardwood, softwood, and composite materials. These mats are essential for surface protection in a variety of applications, spanning construction, maintenance, repair, and operations. With a significant presence in over 40 U.S. states, Yak primarily caters to the utility and midstream sectors. For the fiscal year ending December 31, 2023, Yak reported $171 million in adjusted EBITDA from $353 million in adjusted revenue, illustrating its robust financial health and operational efficiency.
Matthew Flannery, Chief Executive Officer of United Rentals, expressed enthusiasm about the acquisition, stating, “Today we are very excited to welcome Yak to the United Rentals family. This is an acquisition with both strong strategic and financial merits. Not only does it augment our growth capacity with the addition of a leading North American matting solutions provider, but it also further differentiates our one-stop-shop value proposition to customers. Combined, this has proven to be a winning strategy for building long-term value for our investors.”
The acquisition not only expands United Rentals’ product and service portfolio but also strengthens its position as a comprehensive solutions provider in the competitive rental market. The strategic integration of Yak’s offerings into United Rentals’ existing suite of services is anticipated to enhance the company’s ability to meet the diverse needs of its clientele, particularly in the utility and midstream sectors.
United Rentals plans to update its 2024 financial outlook to reflect the combined operations following the acquisition. This update is expected to be announced with the company’s first-quarter financial results in April, providing stakeholders with insights into the financial implications and growth prospects stemming from this strategic move.