Herc Holdings Surpasses United Rentals with $5.3B H&E Equipment Bid

Deal News | Mar 18, 2025 | EIN

Herc Holdings Surpasses United Rentals with $5.3B H&E Equipment Bid

In a significant development within the equipment leasing industry, H&E Equipment Services Inc., headquartered in Baton Rouge, was initially set to merge with United Rentals for $4.8 billion. However, during the designated 35-day go-shop period, Herc Holdings made a superior $5.3 billion offer, which included the assumption of $1.5 billion in debt. Herc's offer consisted of a cash payment and shares exchange, providing H&E shareholders an opportunity to hold a 14.1% stake in the new combined entity. As a result, H&E shifted its allegiance from United Rentals to enter into a merger agreement with Herc. The deal allows Herc Holdings to expand its operations significantly within the U.S., leveraging the extensive network of H&E locations and enhancing its market capacity. Meanwhile, other noteworthy transactions in the region include Danos Inc.'s acquisition of assets from X-Pro Valve LLC and Surplus Valve Warehouse LLC, aimed at strengthening its service offerings in the valve and wellhead sector. Moreover, New Orleans-based Moxie Media was acquired by Mintra, further expanding its reach in the digital training sector for critical industries. These transactions illustrate a robust period of M&A activity within the industrial and energy sectors in Louisiana.

Sectors

  • Industrial Equipment Leasing
  • Energy Services
  • Digital Learning and Workforce Management

Geography

  • United States – The main focus of the article is on U.S.-based companies involved in significant transactions, including H&E Equipment Services in Baton Rouge, Danos Inc. in Grey, and Moxie Media in New Orleans.
  • Norway – Mintra, the acquiring company of Moxie Media, is based in Norway, expanding its influence into the U.S. market through the acquisition.

Industry

  • Industrial Equipment Leasing – H&E Equipment Services Inc., United Rentals, and Herc Holdings are prominent players in the leasing of machinery and equipment for industrial and construction markets.
  • Energy Services – Danos Inc.'s acquisition of X-Pro Valve LLC and Surplus Valve Warehouse LLC enhances its capabilities in providing valve services to industrial and energy sectors.
  • Digital Learning and Workforce Management – Mintra's acquisition of Moxie Media expands its offerings in digital training solutions for safety-critical sectors.

Financials

  • $5.3 billion – The transaction value of Herc's offer to acquire H&E Equipment Services, including $1.5 billion in assumed debt.
  • 14% – The premium of Herc's offer over United Rentals' $4.8 billion bid for H&E.
  • 14.1% – The equity interest that H&E shareholders will hold in the new Herc entity post-merger.
  • $63.52 million – The termination fee paid to United Rentals, which Herc has agreed to cover on behalf of H&E.
  • $300 million – The expected run-rate EBITDA opportunities from Herc's acquisition of H&E.

Participants

NameRoleTypeDescription
H&E Equipment Services Inc.Target CompanyCompanyA machinery and equipment leasing firm based in Baton Rouge.
United Rentals (URI.N)Bidding CompanyCompanyA leading equipment rental company initially set to merge with H&E.
Herc Holdings (HRI.N)Bidding CompanyCompanyThe successful bidder for H&E, focused on expanding its equipment leasing operations.
Danos Inc.Acquiring CompanyCompanyAn energy services provider expanding its valve service offerings through acquisitions in Louisiana.
X-Pro Valve LLCTarget CompanyCompanySpecializes in supplying and refurbishing industrial valves and has been acquired by Danos Inc.
Surplus Valve Warehouse LLCTarget CompanyCompanyOwns valve inventory acquired by Danos Inc. alongside X-Pro Valve.
Moxie MediaSelling CompanyCompanySpecializes in producing training content for the energy, maritime, and industrial sectors; sold to Mintra.
MintraAcquiring CompanyCompanyA Norway-based provider of digital learning solutions, acquiring Moxie Media to extend its platform.