Herc Holdings (HRI) entered a merger agreement on February 18, 2025, to acquire H&E Equipment Services, Inc. (HEES) in a cash and stock deal worth $5.66 billion, after submitting a superior offer to H&E’s earlier merger with United Rentals (URI).
Under the terms of the agreement, Herc intends to commence a tender offer to acquire all of the outstanding shares of H&E common stock for a per-share value of $78.75 in cash and 0.1287 shares of Herc common stock, representing a total value of $104.89 per share. This represents a 4.3% premium from the stock’s last close.
Herc submitted its offer during H&E’s go-shop period from its merger with United Rentals. Herc has agreed to cover the $63.52 million termination fee that H&E owes United Rentals for canceling their merger agreement.
H&E Equipment Services is one of the largest rental equipment companies in the U.S., providing equipment rentals, sales, parts, and maintenance services across diverse industries. Founded in 1961 and headquartered in Baton Rouge, Louisiana, the company operates a nationwide network of service facilities.
Herc is a leading equipment rental supplier, offering a full range of construction, industrial, and specialty equipment across North America. Founded in 1965 and headquartered in Bonita Springs, Florida, Herc provides rental, sales, maintenance, and industry-specific solutions to diverse sectors.
“Herc’s cash and stock merger consideration provides H&E shareholders with an immediate and significant premium,” said Herc’s CEO Larry Silber.
Herc expects to achieve approximately $300 million in annual EBITDA synergies within three years of closing the transaction, comprising around $125 million in cost synergies and $175 million in EBITDA impact from revenue synergies.
The deal is expected to close mid-year 2025.
Herc has secured a debt commitment letter from Crédit Agricole Corporate and Investment Bank to finance the merger.
Herc is acquiring H&E at 17.84 times EBITDA.
For a more detailed analysis of this merger and acquisition transaction, please visit the Deal Metrics page:
Deal Metrics for the acquisition of H&E Equipment Services, Inc. (HEES) by Herc Holdings Inc. (HRI)
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Editor’s Note: Baranjot Kaur contributed to this article