e425
Filed by United Rentals
pursuant to Rule 425 under the
Securities Act of 1933, as amended.
Subject of the offer: RSC Holdings
(Commission File No.: 001-33485)
United Rentals VP Talking Points
THE NEWS
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On December 16, 2011, United Rentals announced that it has reached an agreement to
acquire RSC Holdings 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. |
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Two respected businesses will be combined to create a new, best-in-class equipment
rental company. It is an unprecedented milestone in the equipment rental industry. |
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By joining forces, United Rentals and RSC are bringing together a wealth of best
practices and talent. The two companies have a lot of respect for each other. They share a
similar philosophy of customer service, safety and commitment to excellence. |
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RSC is very 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. |
THE WHY
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The deal creates the leading North American equipment rental company, with greater
scale, stronger growth prospects and more opportunity for operational efficiencies. |
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The new United Rentals will have a broad geographic footprint, with nearly 1,000
branches across the U.S. and Canada, and the largest, most versatile fleet in the
industry. |
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The expansion should accelerate United Rentals growth with larger customers who
operate nationally and multi-regionally. |
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RSCs industrial base, added to our own, will make it easier to manage the business for
less volatility in future cycles. |
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We should receive even more benefit from the trend toward rental
penetration. |
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Our construction end markets are projected to begin a modest recovery. |
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It is business as usual between now and the closing. For now, nothing changes. |
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Our strategy for capturing business is still exactly the same. Sales calls, quotations
and other customer situations should be handled the same way they are handled now,
according to our companys objectives for rate management, fleet management, customer
service and margin improvement. |
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There will be no immediate changes to employee responsibilities. The top priority is to
continue to provide customers with consistent, seamless support of the highest quality.
Ultimately, we believe that the deal will translate into significant opportunities for
employees of both companies. |
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Salaries and benefits will remain unchanged through December 31, 2012. Whatever you
elected for 2012 will remain in effect for the full year. The company still intends to do
a merit increase in 2012. |
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For our salespeople, there will be no change to the incentives, commissions and bonus
structure we originally intended for 2012, although the sales opportunities themselves may
change during the course of the year. The 2012 structure will be communicated in early
January, as it is each year. |
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Both United Rentals and RSC provide strong and very similar compensation, healthcare
and employee benefit programs. Our company will be very careful in selecting the best
programs for 2013 forward, and will communicate on this topic so employees are well aware
of any future developments. |
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At this early date, there is no timeline for future decisions on how merging of the
operations may affect individual employees or branches. As soon as a timeline is
available, youll hear about it. |
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Our company has 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 no wholesale decisions will be made. United Rentals values each of its
employees and will use the fairest possible process in cases where selections must be
made. |
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Management will do its best to keep employees informed as much as possible every step
of the way. We already have a culture of openness and strong channels of communication.
Thats not going to change. If anything, these channels will be used more frequently in
anticipation of our expanded employee base. |
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Customers will be watching us closely during the transition. We need to meet every
expectation. Our employees will play a critical role in ensuring the success of this
venture. |
Cautionary Statement Regarding Forward-Looking Statements
This document contains forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, and in the Private Securities Litigation Reform Act of
1995, known as the PSLRA. These statements, as they relate to United Rentals or RSC Holdings, the
management of either such company or the transaction, involve risks and uncertainties that may
cause results to differ materially from those set forth in the statements. These statements are
based on current plans, estimates and projections, and, therefore, you should not place undue
reliance on them. No forward-looking statement can be guaranteed, and actual results may differ
materially from those projected. United Rentals and RSC Holdings undertake no obligation to
publicly update any forward-looking statement, whether as a result of new information, future
events or otherwise. Forward-looking statements are not historical facts, but rather are based on
current expectations, estimates, assumptions and projections about the business and future
financial results of the equipment rental industries, and other legal, regulatory and economic
developments. We use words such as anticipates, believes, plans, expects, projects,
future, intends, may, will, should, could, estimates, predicts, potential,
continue, guidance and similar expressions to identify these forward-looking statements that
are intended to be covered by the safe harbor provisions of the PSLRA. Actual results could differ
materially from the results contemplated by these forward-looking statements due to a number of
factors, including, but not limited to, those described in the documents United Rentals and RSC
Holdings have filed with the U.S. Securities and Exchange Commission as well as the possibility
that (1) United Rentals and RSC Holdings may be unable to obtain stockholder or regulatory
approvals required for the proposed transaction or may be required to accept conditions that could
reduce
the anticipated benefits of the merger as a condition to obtaining regulatory approvals; (2) the
length of time necessary to consummate the proposed transaction may be longer than anticipated; (3)
problems may arise in successfully integrating the businesses of United Rentals and RSC Holdings;
(4) the proposed transaction may involve unexpected costs; (5) the businesses may suffer as a
result of uncertainty surrounding the proposed transaction; and (6) the industry may be subject to
future risks that are described in the Risk Factors section of the Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and other documents filed from time to time with the Securities and
Exchange Commission by United Rentals and RSC Holdings. United Rentals and RSC Holdings give no
assurance that it will achieve its expectations and does not assume any responsibility for the
accuracy and completeness of the forward-looking statements.
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The foregoing list of factors is not exhaustive. You should carefully consider the foregoing
factors and the other risks and uncertainties that affect the businesses of United Rentals and RSC
Holdings described in the Risk Factors section of their respective Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and other documents filed from time to time with the Securities and
Exchange Commission. All forward-looking statements included in this document are based upon
information available to United Rentals and RSC Holdings on the date hereof; and United Rentals and
RSC Holdings assumes no obligations to update or revise any such forward-looking statements.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
This document relates to a proposed transaction between United Rentals and RSC Holdings, which will
become the subject of a registration statement and joint proxy statement/prospectus forming a part
thereof to be filed with the SEC by United Rentals. This document is not a substitute for the
registration statement and joint proxy statement/prospectus that United Rentals will file with the
SEC or any other documents that they may file with the SEC or send to shareholders in connection
with the proposed transaction. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SECURITY HOLDERS
ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND ALL OTHER
RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED
TRANSACTION AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION.
You will be able to obtain a free copy of the joint proxy statement/prospectus, as well as other
filings containing information about United Rentals and RSC Holdings, at the SECs Internet site
(http://www.sec.gov). You will also be able to obtain these documents, free of charge, in the
Investor Relations portion of the United Rentals website at http:// http://www.ur.com/investor
under the heading Investors and then under SEC Filings. Copies of the joint proxy
statement/prospectus and the SEC filings that will be incorporated by reference in the joint proxy
statement/prospectus can also be obtained, free of charge, by directing a request to Investor
Relations at 203-618-7318.
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Participants in Solicitation
United Rentals, RSC Holdings and their respective directors and executive officers and certain
members of management and employees may be deemed to be participants in the solicitation of proxies
from the stockholders of United Rentals and RSC Holdings in connection with the proposed
transaction. Information about the directors and executive officers of United Rentals and their
ownership of United Rentals common stock is set forth in the proxy statement for the United Rentals
2011 annual meeting of stockholders, as filed with the SEC on Schedule 14A on March 31, 2011.
Information about the directors and executive officers of RSC Holdings and their ownership of RSC
Holdings common stock is set forth in the proxy statement for the
RSC Holdings 2011 annual meeting of stockholders, as filed with the SEC on Schedule 14A on March
16, 2011. Additional information regarding the interests of those persons and other persons who
may be deemed participants in the proposed transaction may be obtained by reading the joint proxy
statement/prospectus regarding the proposed transaction when it becomes available. You may obtain
free copies of this document as described in the preceding paragraph.
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