United Rentals Inc. announced on Tuesday that it will buy H&E Equipment Services Inc. for $92 per share in cash, or a total enterprise value of $4.8 billion, including around $1.4 billion of net debt. The transaction is expected to close in the first quarter.
United Rentals said the deal will expand its rental fleet by almost 64,000 units and $230 million of non-rental fleet. It should also generate around $130 million of annualized cost synergies within 24 months or around $120 million within three years. "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," United Rentals CEO Matthew Flannery said.
United Rentals jumped 2% in premarket trade after the deal was announced, while H&E surged 104.67%.
