Herc completes H&E acquisition

Herc Rentals has officially finalized its acquisition of H&E Equipment Services, the company announced. Under the terms of the $5.3 billion deal, Herc acquired all of the issued and outstanding shares of H&E’s common stock for, on a per share basis, $78.75 in cash and 0.1287 shares of Herc Rentals common stock in a merger that included the assumption of $1.5 billion in H&E debt.

(Photo: Herc Rentals)

The deal follows a high-profile bidding contest earlier this year which saw Herc outbid United Rentals’ $4.8 billion offer. Herc’s bid, made under a “go-shop” clause in United’s original agreement with H&E, represented a 14% premium and included a $63.52 million termination fee paid to United on H&E’s behalf.

“The acquisition of H&E accelerates Herc’s proven strategy and strengthens our position as a premier rental company in North America,” said Larry Silber, Herc Rentals’ president and chief executive officer. “The addition of H&E’s network and capabilities provides Herc with a leading presence in 11 of the top 20 rental regions, a larger fleet that provides our customers with a range of specialty and general rental products, and a talented team who shares our focus on excellence in customer service and safety. We are excited to realize the substantial upside ahead for industry leading growth and superior value creation.”

The merger, which included four deadline extensions, will see Herc’s footprint grow 35% from its original 451 locations to 613 across North America, and pro forma 2024 total revenues were $5.1 billion. Additionally, H&E will become a wholly-owned subsidiary of Herc and H&E Shares will cease trading on the Nasdaq Stock Market.