Herc Rentals Finalizes $3.9 Billion Merger with H&E

Herc Rentals has successfully completed a $3.9 billion merger with H&E Equipment Services, marking a significant consolidation in the equipment rental industry. The deal, which was part cash and part stock, consisted of $78.75 in cash and 0.1287 shares of Herc Rentals for each H&E share. This move not only enhances Herc's industry standing by increasing its locations from 450 to 613 across North America but also improves its presence in 11 of the top 20 rental markets. Herc, which ranks fourth among equipment rental suppliers, strengthens its footprint and fleet capabilities with the addition of H&E, which previously operated 160 branches with a workforce of 2,900 and 64,000 pieces of rental equipment. Herc outmaneuvered United Rentals, which had initially agreed to a $3.4 billion deal with H&E, requiring H&E to pay a $63.5 million breakup fee to United. The merger strategically positions Herc closer to the industry leader, United Rentals, while significantly expanding its service capabilities and workforce to approximately 10,500 employees. Analysts believe that the increased size and geographical reach will bolster Herc’s competitive edge and customer service excellence.