United Rentals Inc. has announced a $4.8 billion acquisition of H&E Rentals, including $1.4 billion in debt, a move set to enhance its core operations and boost market efficiency. The transaction, revealed Tuesday, caused H&E’s stock to skyrocket by over 100%, underscoring investor confidence in the deal.
Strategic Expansion and Synergy
United Rentals plans to integrate H&E’s well-run operations into its global network, leveraging technology and operational expertise to drive growth. “We’re acquiring a well-run operation that’s primed to benefit from our technology, operations, and broad value proposition,” United Rentals CEO Matthew Flannery said.
The company will initiate a tender offer by Jan. 28 to purchase all outstanding shares of H&E at $92 per share in cash—a significant premium over H&E’s prior closing price of $43.94. Following the news, H&E stock soared to $90.46 by Tuesday morning.
Board Approval and Go-Shop Period
Both companies’ boards unanimously approved the transaction, which is subject to regulatory clearances and other closing conditions. H&E also has a 35-day go-shop period, ending Feb. 17, allowing it to seek alternative proposals.