Equipment Rental Giant Expands Fleet with $4.8 Billion Acquisition
United Rentals Makes a Bold Move
In a major development, United Rentals has agreed to acquire H&E Equipment Services for a staggering $4.8 billion. This strategic move is set to significantly expand United Rentals’ fleet, adding nearly 64,000 units to its arsenal.
H&E Equipment Services Shares Soar
Following the announcement, H&E Equipment Services’ shares more than doubled in value, reaching an intraday high of $90.51. The purchase price of $92 per share sent investors into a frenzy, with United Rentals’ shares also rising by close to 4%.
A Synergistic Combination
The combined entity is expected to generate approximately $130 million in annual cost synergies within two years of the deal closing. The acquisition will bring together a comprehensive range of equipment rental offerings, including power and HVAC, portable storage, tool solutions, fluid solutions, and more.
H&E’s Financial Performance
In the 12 months ended September 30, H&E generated an impressive adjusted EBITDA of $696 million on revenue of $1.52 billion. The transaction, which includes $1.4 billion of net debt, is slated to close in the first quarter of 2025.
A New Era in Equipment Rentals
This acquisition marks a significant milestone in the equipment rental industry, creating a powerhouse with an expanded fleet and enhanced capabilities. As the deal closes, the combined company is poised to become an even more formidable player in the market.
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