United Rentals to Acquire H&E Equipment Services for $4.8B
Deal News | Jan 14, 2025 | Globenewswire
United Rentals, Inc. has announced a definitive agreement to acquire H&E Equipment Services, Inc. for $92 per share in an all-cash deal valued at approximately $4.8 billion, including $1.4 billion of net debt. H&E, which offers a diverse mix of equipment rental products, will expand United Rentals' network significantly with its fleet of 64,000 units and a wide presence across over 30 U.S. states. This acquisition aligns with United Rentals' growth strategy and is expected to deliver significant synergies, including $130 million in cost savings within 24 months and $120 million in cross-sell revenue synergies by year three. The deal has been approved by the boards of both companies, though it still awaits customary closing conditions. Legal and financial advice for the transaction is being provided by Sullivan & Cromwell, Milbank LLP, and BofA Securities, respectively. Both CEOs expressed optimism about the complementary nature of this merger and the benefits to employees and shareholders.
Sectors
- Equipment Rental
- Construction and Industrial Services
Geography
- United States – The primary focus of the article is on the operations and strategic positioning of United Rentals and H&E Equipment Services within the United States, where both companies have significant business operations.
Industry
- Equipment Rental – The article centers on the acquisition of H&E Equipment Services, a major player in the equipment rental industry, indicating significant consolidation in this sector.
- Construction and Industrial Services – Both United Rentals and H&E Equipment Services provide services to the construction and industrial sectors, making this a relevant classification.
Financials
- $4.8 billion – Total enterprise value of the acquisition deal between United Rentals and H&E Equipment Services.
- $92 per share – Cash offer per share for H&E Equipment Services.
- $1.4 billion – Net debt included in the total enterprise value of H&E.
- 6.9x adjusted EBITDA – Acquisition multiple based on trailing twelve months adjusted EBITDA ending September 2024.
- $130 million – Expected cost synergies within 24 months of closing the deal.
- $120 million – Expected annual revenue cross-sell synergies by year three post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| United Rentals, Inc. | Bidding Company | Company | United Rentals is the largest equipment rental company globally, headquartered in Stamford, Connecticut. |
| H&E Equipment Services, Inc. | Target Company | Company | H&E is a major equipment rental firm with a broad presence across the U.S., specializing in general and specialty lines of rental equipment. |
| BofA Securities | Financial Advisor | Company | BofA Securities provided financial advisory services to H&E Equipment Services for this transaction. |
| Sullivan & Cromwell | Legal Advisor | Company | Provided legal advisory services to United Rentals. |
| Milbank LLP | Legal Advisor | Company | Provided legal advisory services to H&E Equipment Services. |