H&E Considers Superior Buyout Offer from Herc

Deal News | Feb 18, 2025 | Globenewswire

H&E Equipment Services, Inc., one of the largest rental equipment companies in the U.S., has received a superior proposal from Herc Holdings Inc. to acquire all outstanding shares of H&E common stock. The offer involves a combination of $78.75 in cash and a fixed exchange ratio of 0.1287 shares of Herc common stock per share of H&E, valuing the offer at approximately $104.59 per H&E share. This proposal was considered superior to an existing merger agreement with United Rentals, Inc. Despite this development, H&E must satisfy certain requirements under its current agreement with United Rentals, which includes a substantial termination fee that Herc has agreed to cover. Clearances for a merger with Herc are anticipated imminently. Meanwhile, United Rentals has waived its right to revise its offer, paving the way for H&E to potentially transition agreements. The merger landscape remains competitive as strategic adjustments unfold.

Sectors

Equipment Rental
Mergers and Acquisitions

Geography

United States – H&E Equipment Services and the parties involved, Herc Holdings and United Rentals, are based in the U.S., which is the main geographic focus of the proposed merger and acquisition activities.

Industry

Equipment Rental – The primary industry of H&E Equipment Services, which provides rental services for a variety of equipment including aerial work platforms, earthmoving, and material handling tools.
Mergers and Acquisitions – The article discusses acquisition proposals and negotiations between Herc Holdings, H&E Equipment Services, and United Rentals, central to M&A activity.

Financials

104.59 – The per share offer value from Herc Holdings for H&E Equipment Services, comprised of cash and Herc common stock.
63,523,892 – The termination fee that H&E Equipment Services must pay to United Rentals if it opts to finalize an agreement with Herc Holdings.
78.75 – The cash portion of the Herc offer per share of H&E common stock.
200.74 – The closing price of Herc's stock on February 14, 2025, used to compute the offer's total value.

Participants

Name	Role	Type	Description
H&E Equipment Services, Inc.	Target Company	Company	A leading rental equipment company that is evaluating acquisition proposals from Herc Holdings and United Rentals.
Herc Holdings Inc.	Bidding Company	Company	The company making a superior proposal to acquire H&E Equipment Services for a combination of cash and stock.
United Rentals, Inc.	Selling Company (Current Agreement)	Company	The company with an existing merger agreement with H&E Equipment Services, which is now considered inferior to Herc’s offer.
UR Merger Sub VII Corporation	Acquisition Subsidiary	Company	Subsidiary of United Rentals involved in the tender offer to acquire H&E Equipment Services.