Herc Holdings moves closer to H&E Equipment acquisition

BONITA SPRINGS, Fla. - Herc Holdings Inc. (NYSE: HRI), a prominent North American equipment rental supplier, has announced the clearance of a significant antitrust waiting period, advancing its acquisition of H&E Equipment Services, Inc. (NASDAQ: HEES). The Hart-Scott-Rodino Antitrust Improvements Act waiting period has expired, and the Securities and Exchange Commission has declared the Form S-4 registration statement effective, signaling compliance with necessary regulatory conditions.

This development propels Herc Holdings toward completing the transaction, which is anticipated by early June 2025. The acquisition’s closure hinges on the tender of a majority of H&E’s shares and customary closing conditions.

Herc Holdings, established in 1965, operates through Herc Rentals Inc. and boasts a network of 453 locations in North America. With a workforce of approximately 7,600 and revenues of $3.625 billion, generating an EBITDA of $857 million, the company provides a comprehensive range of rental equipment and services, including aerial, earthmoving, and material handling equipment, as well as power generation and climate control solutions. According to InvestingPro, the company maintains a healthy financial position with a current ratio of 1.5, indicating strong liquidity management.

The proposed acquisition of H&E is expected to bring together two industry players, potentially creating a more formidable presence in the equipment rental market. However, the company’s statements about the anticipated benefits of the merger and future valuation opportunities remain forward-looking and are subject to various risks and uncertainties that could affect the actual outcomes.

Investors are advised to consider these factors, as detailed in the companies’ filings with the SEC, and recognize that the forward-looking statements are not guarantees of future performance. The completion of the acquisition is still subject to the satisfaction of certain conditions, including the tender of H&E shares.

It is important to note that this article is based on a press release statement and does not constitute an offer to buy or sell securities. The proposed transaction remains subject to various regulatory approvals and market conditions, and stakeholders are encouraged to review the relevant documentation filed with the SEC for more detailed information.

In other recent news, Herc Holdings Inc. reported its first-quarter 2025 earnings, revealing a significant shortfall in earnings per share (EPS), which came in at $1.30 compared to the forecasted $2.24. Despite this, the company managed to slightly surpass revenue expectations, reporting $861 million against a forecast of $847.71 million. The earnings miss was attributed to high transaction costs from the acquisition of H&E Equipment Services, which affected net income and EPS. Herc Holdings maintained its 2025 guidance, expecting revenue synergies from the H&E acquisition. Analysts from KeyBanc Capital Markets maintained a Sector Weight rating on Herc Holding, citing challenges in the equipment rental market and high macroeconomic uncertainty. The company’s management noted a split demand environment, with national accounts growing due to mega-project activities, while local accounts struggled with high interest rates. Despite management’s optimism for improved dollar utilization and EBITDA flow-through, KeyBanc analysts remain cautious due to limited visibility into local account activity. The firm’s analysis suggests a conservative approach may be prudent for investors given the current market conditions.

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