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Investing.com -- United Rentals , Inc. (NYSE: NYSE:URI), also known as United Rentals, stated today that it will not present a revised acquisition proposal for H&E Equipment Services (NASDAQ:HEES), Inc., also referred to as H&E. This decision allows H&E to terminate the previously announced merger agreement with United Rentals.
Matthew Flannery, the CEO of United Rentals, expressed that their decision not to increase their offer for H&E is a reflection of the management’s commitment to financial discipline. He emphasized the company’s focus on their one-stop shop strategy, which is underpinned by world-class service and innovative solutions. He added that they will persist in their well-established strategy centered on profitable growth, robust free cash flow generation, and judicious capital allocation to offer compelling long-term value for their shareholders.
It was earlier announced that United Rentals and H&E entered into a merger agreement on January 14, 2025. However, on February 16, 2025, H&E informed United Rentals that it had received a superior acquisition proposal from another strategic bidder. H&E stated that unless United Rentals improved their bid, they intended to terminate the merger agreement to accept the new acquisition proposal. Before the termination of the merger agreement, H&E was obliged to negotiate in good faith with United Rentals for four business days. United Rentals, however, waived this period.
In accordance with the merger agreement, if H&E terminates the merger agreement to accept the new acquisition proposal, they are obligated to pay a termination fee of approximately $63.5 million to United Rentals.
Following the termination of the merger agreement by H&E, United Rentals will immediately resume its share repurchase program, which is an integral part of the company’s strategy for returning surplus capital to its shareholders. As of February 18, 2025, approximately $250 million of authorization remains on the company’s existing $1.5 billion share repurchase program.
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