H&E Equipment Services Enters into Acquisition Agreement with United Rentals

On January 13, 2025, H&E Equipment Services, Inc. (NASDAQ: HEES) announced that it has entered into an Agreement and Plan of Merger with United Rentals, Inc., a Delaware corporation. The agreement entails a two-step all-cash transaction, consisting of a tender offer followed by a subsequent back-end merger.

The Merger Agreement, which has been unanimously approved and declared advisable by the H&E Equipment Services’ board of directors, outlines the acquisition of H&E by Merger Sub in the cash tender offer phase. The Offer price is set at $92.00 per share, and upon completion of the Offer, the Merger will take place without a meeting or vote of the Company’s stockholders.

As part of the Merger Agreement, each H&E Equipment Services’ PSU and certain RSAs will be fully vested, cancelled, and converted into the right to receive a cash amount based on the Offer Price. The Agreement also includes provisions for termination fees and a “go-shop” period allowing H&E to solicit and evaluate competing proposals until February 17, 2025.

H&E Equipment Services’ Compensation Committee has approved Executive Severance Agreements for named executive officers in preparation for the merger. These agreements outline severance payments and benefits in case of certain employment terminations post-closing. Additionally, an amendment has been made to the Bylaws concerning legal actions involving the Company’s exclusive forum.

Both United Rentals and H&E Equipment Services issued a joint press release on January 14, 2025, regarding the acquisition. The transaction, valued at $4.8 billion, aims to expand United Rentals’ capacity in strategic U.S. markets and provide attractive risk-adjusted returns. The acquisition is expected to close in the first quarter of 2025.

The transaction is subject to customary closing conditions and regulatory approvals. United Rentals plans to commence a tender offer by January 28, 2025. The merger agreement allows for a 35-day “go-shop” period, giving H&E the opportunity to explore alternative proposals until mid-February.

This forward-looking acquisition is positioned to enhance United Rentals’ rental fleet, operational capabilities, and geographical reach. The combined entity is projected to achieve significant cost synergies and revenue growth opportunities over the coming years post-integration.

Investors and shareholders are advised to stay informed through SEC filings and updates provided by both companies regarding the progress and impact of this significant transaction.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read H&E Equipment Services’s 8K filing here.

H&E Equipment Services Company Profile

H&E Equipment Services, Inc engages in the provision of equipment services, which focus on heavy construction and industrial equipment. It operates through the following segments: Equipment Rentals, New Equipment Sales, Used Equipment Sales, Parts Sales, and Services. The Equipment Rentals segment focuses on renting construction and industrial equipment.