See the potential for growth in the carpet business, United Rentals (URI.US) acquiring Yak for approximately $1.1 billion in cash.

United Rentals (URI.US) announced on Monday that it has reached a final agreement with Platinum Equity to acquire Yak Access, Yak Mat, and New South Access & Environmental Solutions (collectively referred to as "Yak") for approximately $1.1 billion in cash. Yak is a leader in the North American matting industry, with around 600,000 hardwood, softwood, and composite mats, providing surface protection for construction and maintenance, repair, and operations (MRO) applications. Yak primarily serves customers in the utility and midstream vertical industries. In 2023, Yak had adjusted revenue of $353 million and adjusted EBITDA of $171 million across more than 40 states in the United States. United Rentals expects to fund the transaction and related expenses through new debt financing and asset-based loan (ABL) credit facilities. United Rentals believes that the long-term opportunities in the energy and power markets, supported by public and private investments, present attractive growth potential for the matting business in the coming years. The company expects to realize approximately $166 million in tax benefit net present value in the $1.1 billion acquisition. It also anticipates achieving $7 million in adjusted EBITDA in the second year following the completion of the transaction. United Rentals expects this acquisition to immediately increase earnings per share and free cash flow (FCF), and deliver compelling returns. The transaction is expected to close in the first quarter of 2024.