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United Rentals , Inc. (NYSE:URI) announced today the termination of its previously announced merger agreement with H&E Equipment Services, Inc. The decision to end the agreement, which was initially disclosed in a January 14, 2025 filing, was mutually agreed upon by both parties on February 19, 2025.
The termination follows the withdrawal of United Rentals’ cash tender offer to acquire all outstanding shares of H&E Equipment Services, which was initiated on January 28, 2025. As a result of the agreement’s termination, H&E Equipment Services will pay United Rentals a termination fee of $63,523,892, in accordance with the terms set forth in the original merger agreement.
The merger agreement’s dissolution also leads to the termination of the amended and restated bridge facility commitment letter between United Rentals (North America), Inc. and various financial institutions, which was intended to finance the transactions contemplated by the merger.
United Rentals, a leader in the equipment rental industry generating $15.35 billion in revenue over the last twelve months, has not disclosed further details regarding the reasons behind the termination of the merger agreement.
The company’s decision to withdraw its tender offer and the subsequent termination of the agreement will not affect its ongoing operations or its commitment to deliver value to its customers and shareholders. For deeper insights into United Rentals’ financial health and growth prospects, investors can access comprehensive Pro Research Reports available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
This development is based on the latest Form 8-K filing with the U.S. Securities and Exchange Commission by United Rentals. The information provided in this article is intended to offer a clear and factual account of the events as reported in the SEC filing without speculation or subjective analysis.
In other recent news, Herc Holdings (NYSE:HRI) Inc. announced a binding acquisition proposal and merger agreement with H&E Equipment Services, Inc. The deal, valued at $104.89 per share, includes $78.75 in cash and 0.1287 shares of Herc common stock per H&E share. This acquisition is expected to generate approximately $300 million in EBITDA synergies by the end of the third year post-closing. Barclays (LON:BARC) analyst Adam Seiden expressed optimism, noting that the acquisition would provide Herc with significant growth opportunities.
Meanwhile, United Rentals, Inc. reported strong financial results for Q4 2024, with earnings per share of $11.59 and revenue of $4.1 billion, surpassing revenue forecasts. Despite this, United Rentals decided not to pursue a revised acquisition proposal for H&E, allowing the merger agreement to be terminated.
The company will receive a $63.5 million termination fee from H&E as a result. United Rentals plans to resume its share buyback program, with $250 million remaining under the current authorization.
Raymond (NSE:RYMD) James maintained an Outperform rating for United Rentals, highlighting the company’s commitment to disciplined capital allocation. The firm anticipates United Rentals will announce an additional $1.5 billion authorization for share buybacks. United Rentals CEO Matthew Flannery emphasized the company’s focus on profitable growth and capital allocation to drive long-term shareholder value.
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