United Rentals, the largest equipment rental firm, has announced a definitive agreement to acquire H&E Equipment Services, doing business as H&E Rentals, for $92 per share in cash, valuing the transaction at $4.8 billion, including $1.4 billion in net debt. H&E, founded in 1961, operates a fleet valued at $2.9 billion and serves construction and industrial markets through its 160 branches across 30 U.S. states. The deal, unanimously approved by both companies' boards, includes a 35-day "go-shop" period allowing H&E to solicit superior proposals. United Rentals commenced a tender offer on January 28, 2025, and the transaction is expected to close in the first quarter of 2025, subject to regulatory and shareholder approvals.
H&E’s nearly 64,000-unit fleet and established branch network will be integrated into United Rentals’ operations, enhancing service capacity in key U.S. regions. The agreement includes a 35-day 'go-shop' provision, allowing H&E to solicit alternative proposals, a standard mechanism in M&A transactions to ensure shareholder value. United Rentals anticipates achieving $130 million in annual cost synergies within 24 months and $120 million in revenue synergies by year three. The acquisition is expected to be immediately accretive to earnings and free cash flow, with United Rentals emphasizing operational efficiencies and financial discipline as it finalizes the deal.
