h&e equipment services becomes wholly owned by herc holdings

Today, H&E Equipment Services, Inc. (NASDAQ:HEES) announced the completion of its acquisition by Herc Holdings (NYSE:HRI) Inc., as detailed in a recent SEC filing. The acquisition, initially disclosed in February 2025, was completed through a merger agreement involving Herc, H&E Equipment Services, and HR Merger Sub Inc., a wholly owned subsidiary of Herc.

Under the agreement, H&E Equipment Services’ shareholders received $78.75 in cash and 0.1287 shares of Herc common stock for each share held. The transaction saw 25,369,090 shares tendered, representing approximately 69.33% of the outstanding shares, with an additional 1,118,630 shares tendered under guaranteed delivery procedures.

Following the acquisition, H&E Equipment Services’ shares were delisted from the Nasdaq Global Market, and trading was suspended prior to the market opening today. The company also plans to deregister its shares under the Securities Exchange Act of 1934.

In conjunction with the acquisition, H&E Equipment Services terminated its Sixth Amended and Restated Credit Agreement, originally established in February 2023, with Wells Fargo (NYSE:WFC) Bank, Bank of America, and JPMorgan Chase (NYSE:JPM) Bank. The company also redeemed its 3.875% Senior Notes due 2028.

Leadership changes accompanied the acquisition, with the resignation of H&E Equipment Services’ board members and executives, including CEO Brad Barber and President John M. Engquist. New directors and officers from Herc Holdings have been appointed, including David Farren, Jennifer Laudermilch, and Derek Lively.

The merger agreement, along with the amended articles of incorporation and bylaws, signifies a significant change in control, making H&E Equipment Services a wholly owned subsidiary of Herc Holdings. The acquisition was financed through a combination of cash on hand and debt financing by Herc. This information is based on a press release statement.

In other recent news, Herc Holdings Inc. has successfully concluded its tender offer to acquire H&E Equipment Services, marking a significant consolidation in the equipment rental industry. The acquisition, valued at $78.75 in cash and 0.1287 shares of Herc common stock for each H&E share, is expected to close on June 2, 2025. This merger will make H&E a wholly-owned subsidiary of Herc, with its shares ceasing to trade on the Nasdaq Stock Market. The tender offer extension allowed Herc Holdings to fulfill necessary conditions, with approximately 69.33% of H&E’s outstanding shares tendered. H&E Equipment Services has suspended its regular quarterly cash dividend as it progresses with the merger. The move is part of a strategic focus on the merger, which is a significant event in H&E’s business strategy. Herc Holdings, which reported revenues of approximately $3.6 billion in 2024, aims to leverage H&E’s assets and customer base to enhance its market position. The completion of this acquisition is based on the satisfaction of all conditions to the offer and acceptance of tendered shares by Herc’s subsidiary, HR Merger Sub Inc.

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