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

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.

H&E Equipment Services (NASDAQ: HEES) has received a superior proposal from Herc Holdings (NYSE: HRI) to acquire all outstanding HEES shares. The offer consists of $78.75 in cash and 0.1287 Herc shares per H&E share, valuing the deal at approximately $104.59 per share based on Herc's February 14, 2025 closing price of $200.74.

United Rentals (NYSE: URI), which had a previous merger agreement with H&E, has declined to submit a revised proposal and waived its match period. H&E must pay United Rentals a $63.5 million termination fee to proceed with the Herc deal, which Herc has agreed to cover. The transaction requirements are expected to be satisfied around February 19, 2025. The company's 35-day go-shop period expired on February 17, 2025.

H&E Equipment Services (NASDAQ: HEES) has announced its Board of Directors has declared a regular quarterly cash dividend of $0.275 per share of common stock. The dividend will be paid on February 24, 2025, to stockholders of record as of the close of business on February 18, 2025.

United Rentals (NYSE: URI) has withdrawn and refiled its Premerger Notification and Report Form under the Hart-Scott-Rodino Act for its pending acquisition of H&E Equipment Services (NASDAQ: HEES). The refiling aims to provide the FTC additional review time beyond the initial 15-day period for cash tender offers.

The company's cash tender offer to purchase all outstanding H&E shares at $92.00 per share remains active. Key dates include: the Go-Shop Period ending February 17, 2025, and the Expiration Date on February 25, 2025. The new HSR waiting period will expire at 11:59 P.M., Eastern Time, on February 18, 2025.

United Rentals (NYSE: URI) has initiated a cash tender offer through its subsidiary to acquire all outstanding shares of H&E Equipment Services (NASDAQ: HEES) at $92.00 per share. The offer, announced on January 28, 2025, will expire on February 25, 2025, at one minute after 11:59 p.m. Eastern Time.

The tender offer is subject to key conditions including: acquisition of more than 50% of outstanding shares, expiration of Hart-Scott-Rodino Act waiting periods, completion of the Marketing Period, and other customary conditions. No financing condition is attached to the offer.

H&E's board of directors has recommended stockholders accept the offer and tender their shares. Innisfree M&A Incorporated is serving as the information agent, while Equiniti Trust Company, acts as the depositary and paying agent for the tender offer.

United Rentals (NYSE: URI) has announced the acquisition of H&E Equipment Services (NASDAQ: HEES) for $92 per share in cash, representing a total enterprise value of $4.8 billion, including $1.4 billion of net debt.

H&E, founded in 1961, operates approximately 160 branches across 30+ U.S. states with 2,900 employees and $2.9 billion in rental fleet. The company generated $696 million in adjusted EBITDA on revenues of $1.518 billion over the trailing 12 months through September 2024.

The transaction is expected to generate $130 million in annual cost synergies within 24 months and $120 million in revenue synergies by year three. The deal is anticipated to close in Q1 2025, subject to customary conditions including regulatory approval. The agreement includes a 35-day 'go-shop' period through February 17, 2025.

United Rentals (NYSE: URI) has announced a definitive agreement to acquire H&E Equipment Services for $92 per share in cash, representing a total enterprise value of approximately $4.8 billion, including $1.4 billion of net debt.

H&E, founded in 1961, operates approximately 160 branches across 30+ U.S. states with 2,900 employees and $2.9 billion in rental fleet at original cost. The company generated $696 million in adjusted EBITDA on revenues of $1.518 billion, with a 45.8% margin over the trailing 12 months through September 2024.

The acquisition will expand United Rentals' fleet by almost 64,000 units and is expected to generate $130 million in annual cost synergies within 24 months and $120 million in revenue synergies by year three. The transaction is expected to close in Q1 2025, subject to customary conditions including regulatory approval. The deal includes a 35-day "go-shop" period through February 17, 2025.

H&E Equipment Services (NASDAQ: HEES) has announced its Board of Directors' declaration of a regular quarterly cash dividend of $0.275 per share of common stock. The dividend will be paid on December 13, 2024, to stockholders of record as of the close of business on November 29, 2024.

H&E Equipment Services (NASDAQ: HEES) reported Q3 2024 financial results showing mixed performance. Total revenues declined 4.0% to $384.9 million, while net income decreased to $31.1 million from $48.9 million year-over-year. Despite industry headwinds, rental revenues grew 2.8% to $288.1 million. The company achieved significant branch expansion, adding eight new locations in Q3, bringing total coverage to 157 locations across 32 states. Key metrics showed some weakness with average time utilization at 67.6% (down from 70.0%) and rental rates declining 0.1% year-over-year. The company's rental fleet reached nearly $3.0 billion in original equipment cost, an 8.1% increase from Q3 2023.