H&E Equipment Services Stock Soars on United Rentals $4.8B Acquisition
Deal News | Jan 14, 2025 | EIN
United Rentals Inc. has announced its plan to acquire H&E Equipment Services, Inc. for $92 per share, resulting in a stock price surge for H&E. This acquisition values H&E at approximately $4.8 billion, which includes about $1.4 billion of net debt. United Rentals intends to commence a tender offer by January 28th, followed by a second-step merger, expecting to finalize the deal by Q1 2025. The acquisition aligns with United Rentals' strategy to enhance its core business operations and improve customer service, providing significant cost and revenue synergies post-merger.
Sectors
- Construction & Industrial Equipment Rental
- Mergers & Acquisitions
Geography
- United States – Both United Rentals Inc. and H&E Equipment Services, Inc. are based in the United States, and the transaction takes place within this geographical context.
Industry
- Construction & Industrial Equipment Rental – The article discusses companies that provide equipment rental services within the construction and industrial sectors, highlighting the expansion of rental fleets and equipment offerings.
- Mergers & Acquisitions – The article is centered around United Rentals' acquisition deal involving H&E Equipment Services, illustrating a significant transaction within the industry.
Financials
- 4.8 billion – The enterprise value of the acquisition deal, including $1.4 billion of net debt.
- 92 – The cash offer per share for H&E Equipment Services.
- 6.9x – The EBITDA multiple based on trailing 12 months ended September 30, 2024.
- 696 million – EBITDA generated by H&E Equipment Services on a trailing 12-month basis.
- 1.5 billion – Total revenue generated by H&E Equipment Services for the trailing 12 months.
- 130 million – The expected annualized cost synergies generated within 24 months post-acquisition.
- 120 million – Expected annual revenue cross-sell synergies by the third year post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| H&E Equipment Services, Inc. | Target Company | Company | A company providing general rental fleets and specialty equipment in the construction and industrial sectors. |
| United Rentals Inc. | Bidding Company | Company | The purchasing company that is acquiring H&E Equipment Services to expand its equipment rental capabilities and achieve synergies. |
| Matthew Flannery | CEO of United Rentals | Person | CEO of United Rentals, overseeing the acquisition of H&E Equipment Services to further the firm's growth strategy. |