27.11.2017

H&E acquires in Colorado

H&E Equipment Services has reached a definitive agreement to acquire rental company Contractors Equipment Center of Denver Colorado for $122.4 million in cash.

Contractors Equipment (CEC) is a general rental company, with a significant access range, including booms and scissor lifts as well as telehandlers. It fleet is principally focused on Genie and JLG. Revenues last year were $34 million and the company operates from three locations – Commerce City/Denver, Erie and Greeley. H&E also has three locations in Colorado – Denver, Colorado Springs and Fort Collins. The deal is expected to close prior to year end.

H&E chief executive John Engquist said: “From every perspective, we believe CEC meets the strict criteria we demand for every acquisition. CEC is a long-term proven operator that has delivered solid operational and financial results and possesses a highly experienced management team and employee base, which also shares our culture for best in class commitment to customer service and safety. CEC generated revenues of approximately $34 million for the last 12 months and its fleet size based on original equipment cost was $84 million. With the addition of CEC, we will double our branch count to six in Colorado, significantly expanding our presence in a high growth construction market.”

“CEC’s end user markets and fleet mix are also highly complementary to our existing business. We welcome CEC’s employees to the H&E family and are actively evaluating acquisitions similar to CEC that align with our growth strategy and expand our operations.”

Greg Harrington of Contractors Equipment added: “This acquisition is a significant compliment to everyone at CEC and validates our hard work and success in the construction markets we serve in Colorado. By joining H&E, we become part of an industry leading integrated equipment services company with the scale to better serve our existing customers and further expand our presence in the vibrant Denver and surrounding markets. We believe our employees will also benefit from broader further career advancement opportunities.”