Herc again extends deadline for H&E deal

(Photo: Herc Rentals)

Herc Holdings has extended the deadline for its tender offer to acquire H&E Equipment Services, pushing the expiration date to May 29, 2025, as it works to finalise the $5.3 billion acquisition.

The extension gives Herc additional time to satisfy the remaining conditions outlined in the merger agreement signed on February 19, 2025.

Under the terms of the offer, H&E shareholders are to receive $78.75 in cash and 0.1287 shares of Herc common stock per H&E share, in a deal that includes the assumption of $1.5 billion in H&E debt.

As of May 22, approximately 67.72% of H&E’s outstanding shares had been validly tendered and not withdrawn, with another 2.34% submitted under guaranteed delivery procedures, according to Computershare Trust Company, the offer’s depository and paying agent.

It’s not the first time the deal has been pushed back, having previously extended to May 22, although the latest move suggests the deal is in its final stages, with most regulatory hurdles already cleared.

Herc recently announced it had satisfied key antitrust and compliance checks, addressing potential concerns about reduced competition in the equipment rental industry.

The company also revealed plans to issue $2.75 billion in senior unsecured notes through a newly formed entity, Herc Holdings Escrow, to help finance the deal. If the acquisition and financing close simultaneously, the escrow step will be bypassed and the funds will be released directly.

The deal follows a high-profile bidding contest earlier this year in which Herc outbid United Rentals’ $4.8 billion offer.

Herc’s bid, made under a “go-shop” clause in United’s original agreement with H&E, represented a 14% premium and included a $63.52 million termination fee paid to United on H&E’s behalf.