Herc Holdings Inc. to Acquire H&E Equipment Services, Inc. as Joint Merger Agreement is Announced

Herc Holdings Inc. and H&E Equipment Services, Inc. made significant corporate announcements in a joint press release on February 19, 2025. The two companies revealed the termination of H&E’s previous merger agreement with United Rentals, Inc., followed by the agreement for Herc Holdings Inc. to acquire H&E. This acquisition is anticipated to fortify Herc’s premier platform and expedite its strategy for top-tier growth alongside enhanced value creation.

Under the terms of the newly formed agreement between Herc and H&E, H&E shareholders are to receive $78.75 in cash combined with 0.1287 shares of Herc common stock for each share they own. This equates to a total value of $104.89 per share, based on Herc’s 10-day VWAP as of the market closure on February 14, 2025. Upon completion of the transaction, H&E’s shareholders are set to possess approximately 14.1% ownership of the amalgamated entity.

Larry Silber, Herc’s President and Chief Executive Officer, stated, “The acquisition of H&E is a unique opportunity to accelerate Herc’s proven strategy for industry leading growth and delivering superior shareholder value. We have great respect for the H&E team and the high-quality platform they built.”

John M. Engquist, Executive Chairman of H&E, commended the transaction, highlighting the premium value it provides to H&E shareholders in addition to participation in future growth opportunities expected from the merger.

Key benefits expected from this acquisition include expanded scale facilitated by a complementary footprint and fleet mix, with projected annual EBITDA synergies of approximately $300 million by the conclusion of the third year post-transaction. The involved parties envisage a transaction that is highly accretive, with subsequent financial strengths and flexibility foreseen. Additionally, the merged company is predicted to exhibit a financial profile encapsulating robust revenue and EBITDA metrics, promising sustained growth and improved margins.

The deal is planned to finalize in mid-2025, subject to the tender of the majority of H&E’s shares into the offer and the attainment of customary regulatory approvals. Financing for the cash portion of the transaction has already been secured. Moreover, Herc has remitted a termination fee of $63,523,892 to United Rentals in compliance with the terms of H&E’s prior agreement.

Herc Holdings Inc.’s intent to initiate a tender offer for all outstanding H&E common stock shares at $78.75 per share in cash and 0.1287 shares of Herc common stock has been disclosed. Following the tender offer’s closure, Herc plans to acquire all remaining unsold shares through a second-stage merger at the same stipulated price.

For those seeking further information, the presentation slides originally issued on February 18, 2025, and associated with the H&E agreement, along with replay access to the conference call and webcast, are available on Herc’s Investor Relations section. Guggenheim Securities, LLC is the lead financial advisor to Herc, while Credit Agricole Securities (USA) Inc serves as a co-financial advisor, and transactions like these often carry various legal and strategic communication advisories.

Founded in 1965, Herc Holdings Inc., through its Herc Rentals Inc. subsidiary, operates as a full-line rental supplier across North America, generating revenues of approximately $3.6 billion in 2024. H&E Equipment Services, Inc., established in 1961, operates as one of the nation’s largest rental equipment companies.

Investors are urged to exercise caution before making any decisions regarding securities, considering the various financial, operational, and strategic implications that such transactions entail. It is advised to refer to the forthcoming tender offer materials, which will be made accessible to H&E stockholders at no cost.

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

About Herc

Herc Holdings Inc, together with its subsidiaries, operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, as well as generators, and safety supplies and expendables; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment.