United Rentals, Inc. (URI) has announced its intention to acquire H&E Equipment Services, Inc. (HEES), a fellow equipment rental enterprise, for $92 per share in cash. This transaction values the deal at approximately $4.8 billion, inclusive of H&E’s net debt, estimated to be around $1.4 billion.
This strategic acquisition is designed to expand United Rentals' core operations, enhance revenue streams through a cross-selling approach, and ultimately improve shareholder returns. The integration of the two companies is expected to yield around $130 million in annual cost savings within two years following the deal's closure. Moreover, the acquisition is anticipated to immediately contribute positively to United Rentals' adjusted earnings per share and boost its free cash flow from the first year after the completion of the transaction.
The deal is anticipated to close in the first quarter of 2025. As for market movements, United Rentals shares are trading at $713.21 in pre-market trading on the New York Stock Exchange, reflecting a 3.50 percent increase.
