18.02.2025

United's acqusition of H&E - Off

US based United Rentals has notified H&E Equipment Services that it does not intend to submit a revised proposal to acquire the business, allowing H&E to terminate its agreed merger with United. See: United to acquire H&E

The move follows the receipt by H&E of a more attractive bid from Herc Rentals, causing it to inform United earlier this week that barring an improved bid from the company it intended to terminate the merger agreement and accept the better offer. Before terminating the agreement H&E was required to negotiate in good faith with United Rentals for four business days, but earlier today United Rentals waived this condition.

Under the merger agreement, H&E is now required to pay United a $63.5 million termination fee having terminated the agreement to accept a more attractive offer.

Chief executive Matt Flannery 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. And we will continue to follow our well proven strategy focused on profitable growth, strong free cash flow generation and prudent capital allocation to drive compelling long term value for our shareholders.”