United Rentals to Acquire H&E Rentals in $4.8B Deal
One of the world's largest equipment rental companies would obtain H&E's 160 branches in 30 states to increase its U.S. market...
machineryasia 
In a move set to further consolidation of equipment rental companies, United Rentals has announced it will acquire H&E Rentals and its 160 U.S. locations.
The $4.8 billion deal is expected to close in this year’s first quarter.
Under the acquisition announced on January 14, United Rentals will pay $92 per share for the publicly traded company, including about $1.4 billion of net debt.
Purchasing H&E Rentals, which has branches in 30 U.S. states, will allow United Rentals, one of the largest rental equipment companies in the world, to increase its capacity in key U.S. markets. H&E Rentals currently has around 2,900 employees and, according to United Rentals’ filings with the Securities and Exchange Commission, will survive as a wholly owned subsidiary of United Rentals. The deal includes H&E's 64,000-unit rental fleet, with an original cost of about $3 billion.
This map shows all H&E Rentals' locations as of September 30, 2024.United Rentals
H&E Rentals will become one of many equipment rental companies United Rentals has acquired over the years, including RSC Holdings in 2012, NES Rentals in 2017, Neff Rental in 2017, BlueLine Rental in 2018 and Ahern Rentals in 2022.
The integration of H&E into United Rentals’ operations can lead to improved efficiency and new business development as the company adheres to United Rentals’ operational standards and tech offerings, United Rentals says.
Notably, the agreement between the two companies allows H&E Rentals a 35-day “go-shop” period to solicit, consider and possibly accept better merger offers.
In its most recently filed earnings report, H&E Rentals brought in $384.9 million in third-quarter revenue, down 4% from $400.7 million in the third quarter of 2023. United Rentals, meanwhile, reported just under $4 billion in third-quarter 2024 revenue, a 6% year-over-year increase.
On a trailing 12-month basis through September 30, 2024, H&E Rentals’ adjusted EBITDA came in at $696 million, on total revenues of $1.5 billion.
According to United Rentals’ investor presentation regarding the acquisition, H&E Rentals’ equipment fleet mix is currently 33% aerial, 30% material handling and 25% earthmoving.
