Herc Completes Acquisition of H&E for $5.3 Billion

Deal News | Jun 02, 2025 | EIN

Herc Completes Acquisition of H&E for $5.3 Billion

Herc Rentals has completed its significant acquisition of H&E Equipment Services, solidifying the company's dominance in the North American rental industry. The $5.3 billion transaction involved Herc acquiring H&E's outstanding shares for $78.75 per share in cash and 0.1287 Herc shares, also taking on $1.5 billion of H&E's debt. Herc's successful bid, under a go-shop provision, surpassed a prior $4.8 billion offer by United Rentals, compensating United Rentals with a $63.52 million termination fee. Herc's CEO, Larry Silber, emphasized the strategic advantage gained from H&E's extensive footprint and capability, facilitating Herc's aggressive growth to total revenues of $5.1 billion by 2024. The merger included multiple deadline extensions and will result in Herc expanding its location count by 35%, with H&E transitioning to a wholly-owned subsidiary and delisting from Nasdaq.

Sectors

  • Construction Equipment Rental
  • Merger and Acquisition

Geography

  • North America – The region where Herc's expanded presence will be significant, covering 11 of the top 20 rental markets in the area.
  • United States – As the location where both Herc and H&E primarily operate, and where the acquisition effects are most concentrated.

Industry

  • Construction Equipment Rental – This industry involves the rental of construction equipment, which is central to the operations and business focus of Herc and H&E.
  • Merger and Acquisition – This industry classification is relevant as the article discusses the acquisition of H&E by Herc.

Financials

  • $5.3 billion – The total value of the deal for Herc Rentals to acquire H&E Equipment Services.
  • $1.5 billion – The assumed debt of H&E by Herc Rentals as part of the acquisition.
  • $78.75 – The cash amount per share of H&E stock provided by Herc as part of the acquisition.
  • 0.1287 shares – The amount of Herc Rentals common stock provided for each share of H&E as part of the acquisition.
  • $63.52 million – The termination fee paid to United Rentals following Herc's successful bid.
  • $5.1 billion – The projected pro forma total revenues for 2024 following the merger.

Participants

NameRoleTypeDescription
Herc RentalsBidding Company/BuyerCompanyThe company acquiring H&E, expanding its footprint and enhancing its market leadership in the rental service industry.
H&E Equipment ServicesTarget CompanyCompanyThe target of the acquisition by Herc Rentals, a significant player in the rental equipment market.
United RentalsCompeting BidderCompanyThe company that originally bid $4.8 billion for H&E but was outbid by Herc.
Larry SilberCEO of Herc RentalsPersonPresident and Chief Executive Officer, commenting on the strategic benefits of the H&E acquisition.