(Reuters) -Industrial equipment and tool-rental firm United Rentals (NYSE:URI) said on Monday it had agreed to buy construction company Yak Access for about $1.1 billion in cash from Platinum Equity, as it expands its portfolio to include matting.
Yak Access provides temporary mats for surface protection across construction and maintenance, repair and operations (MRO) applications.
United Rentals expects significant potential to grow the matting business over the next several years, supported by opportunities in energy and power markets, where mats are used to hold long lengths of pipe during installation and maintenance.
"This combination builds upon our Power vertical strategy, where significant investment in generation, transmission and distribution is expected over the next several decades," said Matthew Flannery, CEO of United Rentals.
United Rentals expects to use a combination of new debt financing and existing capacity under its Assets-based Lending (ABL) facility to fund the deal and its related expenses.
The deal is expected to close in the first quarter of 2024.