Herc Holdings completes H&E Equipment acquisition

Published 02/06/2025, 14:02
Herc Holdings completes H&E Equipment acquisition

BONITA SPRINGS, Fla. - Herc Holdings Inc. (NYSE: HRI), a prominent North American equipment rental supplier, has finalized the acquisition of H&E Equipment Services Inc., also known as H&E Rentals. This strategic move is anticipated to enhance Herc’s standing in the competitive equipment rental market.

According to Herc Rentals President and CEO Larry Silber, the acquisition positions the company in 11 of the top 20 rental regions and expands its fleet offerings. The company has demonstrated solid performance with an 8.3% revenue growth over the last twelve months and maintains a healthy current ratio of 1.5. Silber emphasized that the merger aligns with Herc’s growth strategy and commitment to exceptional customer service and safety.

The terms of the merger agreement included Herc Rentals purchasing all issued and outstanding shares of H&E’s common stock for $78.75 in cash per share and 0.1287 shares of Herc Rentals common stock. Subsequently, H&E’s common stock has been delisted from the NASDAQ.

Guggenheim Securities, LLC acted as the lead financial advisor for the transaction, with Credit Agricole Securities (USA) Inc and Credit Agricole Corporate and Investment Bank providing additional financial and financing support. Legal advice was offered by Simpson Thacher & Bartlett LLP, and Joele Frank, Wilkinson Brimmer Katcher advised on strategic communications.

Herc Holdings, established in 1965 and operating through Herc Rentals Inc., has expanded its North American footprint to 613 locations with the recent acquisition. The company’s pro forma total revenues for 2024 stood at $5.1 billion. Herc Holdings employs around 10,500 people and offers a range of rental equipment and services designed to enhance customer efficiency and safety.

This press release contains forward-looking statements, which are subject to risks, uncertainties, and assumptions that could cause actual outcomes to differ from those projected. The statements include expectations about the transaction’s benefits and the company’s future plans. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made.

The completion of this transaction marks a significant expansion for Herc Holdings in the equipment rental sector. This article is based on a press release statement from Herc Holdings Inc.

In other recent news, Herc Holdings Inc. has reported its first-quarter 2025 earnings, revealing a notable shortfall in earnings per share (EPS) compared to forecasts. The company posted an EPS of $1.30, significantly below the expected $2.24, although revenue slightly exceeded expectations at $861 million against a forecast of $847.71 million. Herc Holdings incurred $74 million in transaction costs related to its acquisition of H&E Equipment Services, which impacted net income and EPS. The acquisition process is advancing as Herc Holdings announced the expiration of a significant antitrust waiting period, moving closer to completing the transaction. The company plans to issue $2.75 billion in senior unsecured notes to finance the acquisition. KeyBanc Capital Markets maintained a Sector Weight rating on Herc Holdings, citing challenges such as missed expectations in EBITDA and rental revenue. Despite these hurdles, Herc Holdings maintained its 2025 guidance and expects to capitalize on revenue synergies from the H&E acquisition. The company’s management remains optimistic about future growth, driven by mega-project activities and strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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