H & E Equipment Services Inc Stock Price, News & Analysis

Herc Holdings (NYSE: HRI), a leading North American equipment rental supplier, has achieved significant milestones in its planned acquisition of H&E Equipment Services (NASDAQ: HEES). The company announced two key regulatory clearances: the expiration of the Hart-Scott-Rodino Act waiting period and the SEC's declaration of effectiveness for its Registration Statement on Form S-4. These developments mark crucial steps toward completing the proposed acquisition, which is anticipated to close by early June 2025. The transaction's completion remains subject to H&E shareholders tendering a majority of shares and other customary closing conditions.

Herc Holdings (NYSE: HRI) has announced an extension of its tender offer to acquire H&E Equipment Services (NASDAQ: HEES). The offer, originally set to expire on May 13, 2025, has been extended to May 22, 2025, to allow time for remaining conditions and regulatory approvals. The acquisition terms remain unchanged at $78.75 in cash and 0.1287 Herc shares for each H&E share.

As of May 7, 2025, approximately 32.73% of H&E shares (11,999,305 shares) have been validly tendered, with an additional 0.15% (53,759 shares) tendered through guaranteed delivery procedures. The offer remains subject to completion conditions outlined in the Prospectus/Offer to Exchange dated March 19, 2025.

Herc Holdings has extended its tender offer to acquire H&E Equipment Services. The offer, which was set to expire on April 29, 2025, has been pushed to May 13, 2025, to allow additional time for regulatory approvals and other conditions to be met.

Under the terms of the February 19, 2025 merger agreement, Herc is offering $78.75 in cash and 0.1287 shares of Herc common stock for each H&E share. As of April 29, 2025, approximately 51.76% of H&E shares (18,977,282 shares) have been validly tendered, with an additional 1.25% (457,173 shares) tendered through guaranteed delivery procedures.

The tender offer remains subject to completion conditions outlined in the Prospectus/Offer to Exchange dated March 19, 2025, and related documents filed with the SEC.

H&E Rentals reported challenging Q1 2025 results, with total revenues declining 14.0% to $319.5 million compared to Q1 2024. The company faced headwinds from weak local market demand and merger-related pressures.

Key financial highlights:

• Equipment rental revenues decreased 7.2% to $274.0 million
• Net loss of $6.2 million, with adjusted net income of $1.2 million excluding merger expenses
• Adjusted EBITDA fell 18.9% to $131.2 million
• Average rental rates declined 2.0% year-over-year
• Time utilization dropped to 60.3% from 63.6%

Despite challenges, H&E continued its branch expansion strategy, opening four locations in Q1 and one in Q2. The company remains optimistic about its planned merger with Herc Rentals, expecting enhanced operating resilience across broader markets and geographies upon completion.

Herc Holdings (NYSE: HRI) has announced an extension of its tender offer to acquire H&E Equipment Services (NASDAQ: HEES). The offer, which was set to expire on April 15, 2025, has been extended to April 29, 2025. Under the terms of the February 19, 2025 merger agreement, Herc is offering $78.75 in cash and 0.1287 shares of Herc common stock for each H&E share.

The extension aims to allow additional time for satisfying remaining conditions, including regulatory approvals. As of April 15, 2025, approximately 17,906,866 H&E shares (48.84%) have been validly tendered, with an additional 385,504 shares (1.05%) tendered through guaranteed delivery procedures.

Herc Holdings (NYSE: HRI) has initiated a tender offer to acquire all outstanding shares of H&E Equipment Services (NASDAQ: HEES). The offer includes $78.75 in cash and 0.1287 shares of Herc common stock for each H&E share.

The tender offer, announced on February 19, 2025, will expire on April 15, 2025, at 11:59 p.m. Eastern Time. The transaction is subject to majority shareholder approval and regulatory clearances. Herc will finance the acquisition through available cash, marketable securities proceeds, and credit facility funds amended on March 11, 2025.

Following the tender offer completion, Herc will acquire remaining shares through a second-step merger at the same price. The transaction is expected to close by mid-2025. Guggenheim Securities serves as lead financial advisor, with Credit Agricole Securities as co-financial advisor.

H&E Equipment Services (NASDAQ: HEES) reported Q4 2024 results, alongside news of its upcoming acquisition by Herc Holdings. Q4 revenues slightly decreased by 0.4% to $384.1 million, while net income dropped to $32.8 million from $53.5 million year-over-year.

Key Q4 metrics include: rental revenues increased 0.8% to $319.4 million; rental equipment sales decreased 30.1%; total gross margin declined to 43.6%; and Adjusted EBITDA decreased 5.6% to $174.9 million. The company's rental fleet grew 5.5% to $2.9 billion, while average rental rates declined 1.1% year-over-year.

For full-year 2024, total revenues increased 3.2% to $1,516.6 million, with rental revenues up 5.4% to $1,108.3 million. Annual net income was $123.0 million ($3.37 per diluted share), down from $169.3 million in 2023.

Herc Holdings (NYSE: HRI) and H&E Equipment Services (NASDAQ: HEES) have entered into a definitive merger agreement, with H&E terminating its prior agreement with United Rentals. Under the terms, H&E shareholders will receive $78.75 in cash and 0.1287 Herc shares per share, valuing H&E at $104.89 per share. H&E shareholders will own approximately 14.1% of the combined company.

The merger will strengthen Herc's position as North America's third-largest rental company, with a leading presence in 11 of the top 20 rental regions. The combined company is expected to generate $300 million in annual EBITDA synergies by year three, including $125 million in cost synergies and $175 million from revenue synergies. The combined entity will have revenue of $5.2 billion and EBITDA of $2.5 billion.

The transaction is expected to close mid-year 2025, subject to regulatory approvals and tender of majority H&E shares. The deal is projected to be high single-digit accretive to Herc's cash earnings per share in 2026.

Herc Holdings has submitted a superior proposal to acquire H&E Equipment Services for $104.89 per share, consisting of $78.75 in cash and 0.1287 shares of Herc common stock per H&E share. This offer represents a 14% premium over United Rentals' previous $92.00 per share cash offer. H&E shareholders would own approximately 14.1% of the combined company.

The merger is expected to generate $300 million in annual EBITDA synergies by year three, including $125 million in cost synergies and $175 million from revenue synergies. The combined company would have over 600 locations with a fleet worth approximately $10 billion, strengthening Herc's position as North America's third-largest rental company.

The transaction is projected to close mid-year 2025, subject to regulatory approvals and tender of majority H&E shares. The deal is expected to be high single-digit accretive to Herc's cash EPS in 2026, increasing to over 20% as synergies are realized.