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Herc’s $5.3bn power play snags H&E from United Rentals

Herc Rentals has officially signed the deal to acquire H&E Equipment Services in a transaction valued at $5.3 billion, including $1.5 billion in debt. The transaction is expected to close in mid 2025.

Herc’s agreement replaces United Rental’s $4.8 billion bid for H&E, perviously announced last month. 

On Feb. 18, 2025, United had four days to submit a revised proposal but chose not to, citing “financial discipline.” According to reports, Herc paid a termination fee of $63.52 million to United on behalf of H&E.

Herc made its bid using the “go-shop” provision included in H&E’s previously announced agreement with United Rentals. Its offer represents a 14.0% premium to United Rentals’ $92.00 per share offer. 

The deal will combine Herc’s $3.5 billion annual revenue business with H&E’s $1.5 billion operation, bolstering Herc’s position as number three in the North American market behind United Rentals and Sunbelt Rentals.

Larry Silber, president and CEO, Herc Rentals. (Photo: Herc Rentals)

Larry Silber, Herc’s president and CEO, said; “Herc’s cash and stock merger consideration provides H&E shareholders with an immediate and significant premium. In addition, by combining our companies, we would unlock substantial upside opportunity for both Herc and H&E shareholders.

“As our track record shows, we are a disciplined and experienced acquiror, and this transaction meets all of our value creation M&A criteria.”

Silber added, “Herc has tremendous respect for H&E and the high quality of the platform and customer centric culture of the organization. This combination would strengthen Herc’s position as a premier rental company in North America.”

Matthew Flannery, chief executive officer of United Rentals, said, “One of our key responsibilities as a management team is to be good stewards of our investors’ capital and our decision not to increase our offer for H&E reflects our commitment to financial discipline.

H&E is one of the top 10 largest equipment rental companies in North America and it has invested strategically in its fleet and branch network consistently over the last several years.

Herc’s combination with H&E would accelerate Herc’s strategy to outpace industry growth by substantially expanding its footprint, increased density in key regions with economies of scale, geographic and customer diversification, and a larger, younger fleet.

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