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Shares of H&E Equipment Services more than doubled their intraday value on Tuesday after United Rentals agreed to buy the company for $4.8 billion.
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The combination of equipment lessees expands United Rentals’ fleet by nearly 64,000 units.
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The companies expect the deal to close in the first quarter of 2025.
H&E Equipment Services (HEES) shares more than doubled their intraday value on Tuesday after the company reached a deal to be acquired by United Rentals (URI) for 4.8 billion dollars.
The purchase price equates to $92 per share, and H&E shares rose accordingly to $90.51 intraday on Tuesday. Shares of United Rentals rose about 4%.
The combination of equipment tenants expands United Rentals’ fleet by nearly 64,000 units and is expected to generate approximately $130 million in annual cost synergies within two years of the deal closing. The combined company’s equipment rental offerings will include power and HVAC, portable storage, tool solutions, fluid solutions and more.
H&E generated adjusted EBITDA of $696 million on revenue of $1.52 billion in the 12 months ended September 30. The transaction, which also includes $1.4 billion of net debt, is expected to close in the first quarter of 2025, the company said.
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