Herc Holdings extends tender offer for H&E Equipment acquisition

Published 30/04/2025, 13:38
Herc Holdings extends tender offer for H&E Equipment acquisition

BONITA SPRINGS, Fla. - Herc Holdings Inc. (NYSE: HRI), a North American rental supplier, has announced the extension of its tender offer for the acquisition of H&E Equipment Services, Inc. (NASDAQ: HEES). The offer, which involves purchasing all outstanding shares of H&E common stock, has been extended until May 13, 2025, to allow additional time for satisfying the conditions of the tender offer, including regulatory approvals.

Originally set to expire just after midnight on April 29, 2025, the extended offer is part of a merger agreement dated February 19, 2025, between Herc Holdings, HR Merger Sub, Inc., and H&E. The terms of the offer include a cash payment of $78.75 and 0.1287 shares of Herc common stock for each H&E share.

As of the close of business on April 29, 2025, approximately 51.76% of the outstanding H&E shares had been validly tendered and not withdrawn. An additional 1.25% of the outstanding H&E shares were tendered under guaranteed delivery procedures. The completion of the offer remains contingent on the terms outlined in the Prospectus/Offer to Exchange, dated March 19, 2025, the related Letter of Transmittal, and other offer documents.

Herc Holdings, founded in 1965 and operating through its subsidiary Herc Rentals Inc., reported total revenues of approximately $3.6 billion in 2024. The company employs around 7,600 people and provides a range of rental equipment and services for construction, industrial, and government sectors. Meanwhile, H&E Equipment Services generated revenues of $1.46 billion in the last twelve months, maintaining dividend payments for 12 consecutive years, as highlighted in InvestingPro’s financial health analysis.

This news is based on a press release statement, and the proposed transaction is subject to various conditions and approvals. Herc Holdings cautions that forward-looking statements related to the acquisition involve risks and uncertainties that could cause actual results to differ materially from those anticipated.

The tender offer documents, along with other filings related to the offer, are available to H&E shareholders and have been filed with the U.S. Securities and Exchange Commission. These documents are accessible for free on the SEC’s website and on the respective companies’ websites.

In other recent news, Herc Holdings Inc. has extended its tender offer to acquire all outstanding shares of H&E Equipment Services, Inc. The offer, part of a merger agreement, consists of $78.75 in cash and 0.1287 shares of Herc common stock for each H&E share. The acquisition, valued at $5.5 billion, is expected to be funded with approximately $4.5 billion in debt and $1 billion in common stock issuance. This transaction is expected to increase Herc’s debt-to-EBITDA ratio to 4.1 times, prompting Moody’s Ratings to deem the acquisition credit negative. S&P Global has also revised Herc’s outlook to negative due to the anticipated increase in debt, placing its $2 billion senior unsecured notes on CreditWatch with negative implications. Despite these concerns, the merger is projected to expand Herc’s branch network and rental equipment fleet, potentially generating $5.4 billion in revenues and $2.3 billion in EBITDA on a pro forma basis for 2025. The acquisition remains subject to regulatory approvals and the tender of a majority of H&E’s shares. Investors are advised to review the detailed offer documents available on the SEC’s website for more information.

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