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H&E Equipment Stock Doubles on Acquisition by United Rentals for $4.8B
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Main points
- Shares of H&E Equipment Services more than doubled intraday Tuesday after United Rentals agreed to acquire the company for $4.8 billion.
- The merger of equipment renters increased United Rentals’ fleet by nearly 64,000 units.
- The companies expect the transaction to close in the first quarter of 2025.
H&E Equipment Services (song) shares more than doubled intraday Tuesday after the company struck a deal obtained by United Rentals, Inc. (Uniform Resource Identifier) is US$4.8 billion.
The acquisition price is equivalent to US$92 per share, and H&E’s stock price soared to US$90.51 during intraday trading on Tuesday. United Rentals shares rose nearly 4%.
Consolidation of equipment rental companies increases United Rentals’ fleet by nearly 64,000 units and is expected to generate approximately $130 million in annual revenue cost synergies Within two years after completion of the transaction. The combined company’s equipment rental offerings will include power and HVAC, portable storage, tool solutions, fluid solutions and more.
H&E generates adjusted Earnings before interest, taxes, depreciation and amortization In the 12 months ended September 30, the company had revenues of $1.52 billion on revenue of $696 million. The deal also includes $1.4 billion in net debtThe company said it expects completion in the first quarter of 2025.
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