United Rentals to Acquire H&E Equipment Services for $4.8 Billion at $92 Per Share, Expanding Fleet

Jan 14, 2025, 12:02 PM

United Rentals Inc. has agreed to acquire H&E Equipment Services Inc. in a deal valued at $4.8 billion, including $1.4 billion in net debt. The acquisition will be at $92 per share in cash, representing a 109.4% premium over H&E's last closing price of $43.94 per share. The deal is expected to close in the first quarter of 2025 and will expand United Rentals' equipment fleet by 64,000 units, enhancing its presence across more than 30 states. The acquisition aims to meet the growing demand for equipment rentals in the construction and industrial markets, driven by increased government spending on infrastructure and production delays at manufacturers. United Rentals expects the deal to generate about $130 million in annualized cost synergies within 24 months of closing.