United Rentals, Inc. (NYSE: URI) stock fell 1.54% and fell over after the company posted better than % in the pre market session on lower than expected third quarter of FY 18 outcome. On September 10, 2018, the company had entered into a definitive agreement to acquire Vander Holding Corporation and its subsidiaries (“BlueLine”) for approximately $2.1 billion in cash. The company expects to fund the acquisition using a new $1 billion term loan facility and other debt issuances. BlueLine is one of the ten largest equipment rental companies in North America, serves over 50,000 customers in the construction and industrial sectors, and has 114 locations and over 1,700 employees based in 25 U.S. states, Canada and Puerto Rico. BlueLine has annual revenues of approximately $786 million. The transaction is expected to close in the fourth quarter. However it is subject to Hart-Scott-Rodino clearance and other customary conditions.

URI in the third quarter of FY 18 has reported the adjusted earnings per share of $4.74, and adjusted revenue growth was 35.9 percent to $2.12 billion in the third quarter of FY 18.

For the year, United Rentals estimates revenue to be in the range of $7.77 billion to $7.87 billion. Analysts expect revenue of $7.75 billion. United Rentals reduced its expected range of free cash flow to be between $1.25 billion to $1.35 billion from a previous range of $1.3 billion to $1.4 billion for the year. The outlook does not include the impact of the company’s pending $2.1 billion acquisition of equipment rental company BlueLine

Moreover, the company expects ROIC to materially increase due to the reduced tax rates following the enactment of the Tax Act, but, because the trailing 12 months are used for the ROIC calculation, the full impact will not be reflected until one year after the lower tax rate became effective.

Additionally, in July 2018, the company commenced its previously announced $1.25 billion share repurchase program. As of September 30, 2018, the company had repurchased $210 million of common stock under the program. The company expects to pause repurchases under the program till the completion of the pending BlueLine acquisition. The company plans to complete the share repurchase program; however, it will continue to evaluate its decision to do so as it integrates BlueLine.