In a dramatic shake-up of the equipment rental industry, Herc Holdings Inc. has struck a deal to acquire H&E Rentals for $5.3 billion, scrapping a prior agreement with United Rentals Inc. The new deal, brokered during a critical “go-shop” period, marks a 14% premium over United’s original offer.
H&E Shareholders Get a Better Offer
H&E’s shareholders will receive $78.75 in cash and 0.1287 shares of Herc stock per share in a tender offer. Herc, represented by Simpson Thacher, will then acquire all remaining shares through a second-step merger at the same price.
H&E’s original agreement with United Rentals, valued at $4.8 billion, was officially terminated upon acceptance of Herc’s superior bid, according to a statement from Milbank LLP, which advised H&E.
“This is an outstanding transaction for H&E shareholders, providing both immediate, premium value and the opportunity to participate in the substantial upside this merger creates,” said John M. Engquist, H&E’s executive chair.
