United Rentals Inc. to Expand Fleet with H&E Equipment Services Acquisition

In a significant move to bolster its market presence, United Rentals Inc. has announced its decision to acquire H&E Equipment Services Inc. for $92 per share in cash. This acquisition, valuing at a total enterprise value of $4.8 billion, including approximately $1.4 billion of net debt, is set to close in the first quarter.

The strategic acquisition is expected to enhance United Rentals' rental fleet by nearly 64,000 units and $230 million of non-rental fleet. Furthermore, it is anticipated to generate around $130 million of annualized cost synergies within 24 months, or approximately $120 million within three years.

Matthew Flannery, CEO of United Rentals, emphasized the benefits of this acquisition, stating, "This acquisition allows us to better serve our customers with expanded capacity in key markets while also providing the opportunity to further drive revenue through our proven cross-selling strategy."

Following the announcement, United Rentals' shares saw a 2% increase in premarket trading, while H&E's shares surged an impressive 104.67%.