H&E Equipment halts dividend ahead of Herc Holdings merger

BATON ROUGE, La. - H&E Equipment Services, Inc. (NASDAQ: HEES), also known as H&E Rentals, has decided to suspend its regular quarterly cash dividend, which was scheduled for June 2025. This move comes as the company progresses with its impending merger with Herc Holdings, Inc., anticipated to conclude in early June 2025.

H&E, established in 1961, ranks among the nation’s top equipment rental firms, offering a diverse fleet that includes aerial work platforms, earthmoving and material handling machinery, among other specialty equipment lines. The company operates across multiple high-growth regions in the United States, spanning from the Pacific Northwest to the Mid-Atlantic.

The Board of Directors’ decision to forgo the dividend payment aligns with the company’s focus on the merger, which represents a significant event in H&E’s business strategy. The merger with Herc Holdings is subject to customary closing conditions, and while the companies expect the transaction to be completed as planned, they caution that uncertainties remain.

Investors and stakeholders have been advised that forward-looking statements provided by the company, which include expectations about the merger’s completion, are subject to various risks and uncertainties. These could lead to outcomes that differ materially from current expectations. Factors that could influence the company’s forward-looking statements include economic conditions, industry trends, supply chain disruptions, and regulatory changes, among others.

The company has emphasized that while it is confident in its strategic direction, it is also aware of the dynamic nature of the market and the various external factors that could impact its operations and the merger process.

H&E Equipment Services has advised that the information regarding the suspension of the dividend and details about the merger is based on a press release statement. The company has not provided any further guidance on future dividend payments post-merger.

As the merger approaches, H&E Equipment Services remains focused on navigating the complexities of the transaction while maintaining its service to customers across its extensive network of branches.

In other recent news, Herc Holdings Inc. has extended its offer to acquire all outstanding shares of H&E Equipment Services, with the deadline now set for May 22, 2025. The terms of the offer include $78.75 in cash and 0.1287 shares of Herc common stock for each H&E share. This extension provides additional time to meet regulatory approvals and other conditions necessary for the merger. As of the latest update, approximately 32.73% of H&E’s shares have been tendered, with a small percentage through guaranteed delivery procedures. Herc Holdings reported total revenues of about $3.6 billion in 2024, and the acquisition aims to enhance operational efficiency across North America. Meanwhile, S&P Global Ratings placed H&E’s senior unsecured debt on CreditWatch with negative implications following the acquisition announcement. This reflects concerns about the impact of Herc’s debt issuance on recovery prospects. However, there is a possibility that H&E’s issuer credit rating could be raised if the acquisition by Herc, a higher-rated company, is completed successfully.

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