Herc Holdings Submits Superior Proposal To Buy H&E Equipment At $104.89/Share

H & E Equipment Services

95.70 USD -0.31%

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(RTTNews) - Herc Holdings Inc. (HRI), Tuesday announced the submission of a superior proposal to acquire H&E Equipment Services Inc. (HEES) at $104.89 per share, exceeding United Rentals, Inc.'s (URI) cash offer of $92.00 per share.

Under the terms of the Herc proposal, the shareholders will receive $78.75 in cash and 0.1287 shares of Herc common stock for each share they own, making them the owners of approximately 14.1 percent of the combined company.

Meanwhile, United Rentals has notified H&E in writing that it does not intend to submit a revised proposal and has waived its four business day match period under the merger agreement.

Herc's merger proposal is expected to generate $300 million of EBITDA synergies by the end of year three following close, and an anticipated improved valuation multiple for the combined company.

The combined company is expected to have revenue and EBITDA of approximately $5.2 billion and $2.5 billion, respectively, with an expectation for continued revenue growth in excess of the market and improved adjusted EBITDA margins.

The transaction, set to close mid-year 2025, is expected to be high single digit accretive to Herc's cash earnings per share in 2026.

In the pre-market hours, Herc's stock is trading at $176, down 12.02 percent on the New York Stock Exchange.