United Rentals to acquire National Pump

United Rentals has agreed to buy National Pump, the second largest pump rental company in North America, for US$780 million.

National Pump has grown rapidly since it's foundation in 2007 and currently has annual revenues of around $215 million. It operates from 35 locations - including four in Canada - and more than three quarters of its fleet is made up of pumps. It has customers in the energy and petrochemical sectors, with upstream oil and gas representing about 50% of its revenue.

United will add National Pump to its Specialty Division, which will now compete head to head with many of the specialist pump rental businesses in North America, including the Godwin rental bsuiness owned by Xylem, which is market leader.

Michael Kneeland, president and chief executive officer of United Rentals, said, “We have been executing against a plan to strengthen and diversify our business, as demonstrated by our 18 specialty cold starts in 2013 and 13 planned for 2014.

“National Pump provides an attractive new specialty offering which increases our penetration in growing end markets and advances over time our financial goals of delivering strong free cash flow and improved returns.”

Mr Kneeland continued, “Loddie Naymola and his team have done an outstanding job of building National Pump into the number two pump rental player and the leading provider to the oil and gas end market. We are pleased that key members of the senior management team are joining United Rentals and remain committed to growing the business.”