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H&E Equipment Services stock more than doubled in value Tuesday after United Rentals agreed to buy the company for $4.8 billion.
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The combination of equipment rental companies expands United Rentals’ fleet by nearly 64,000 units.
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The companies expect the deal to close in the first quarter of 2025.
H&E equipment services (HI) shares more than doubled in value intraday Tuesday after the company reached a deal to be acquired by United Rentals (URI) for $4.8 billion.
The purchase price equates to $92 per share, and H&E stock jumped accordingly to $90.51 intraday on Tuesday. Shares of United Rentals rose nearly 4%.
The combination of equipment rental companies expands United Rentals’ fleet by nearly 64,000 units and is expected to generate approximately $130 million in annual revenue. cost synergies within two years following the conclusion of the transaction. The combined company’s equipment rental offerings will include electrical and HVAC, portable storage, tool solutions, fluid solutions, and more.
H&E generated adjusted EBITDA of $696 million on revenue of $1.52 billion in the 12 months ended September 30. The transaction, which also includes $1.4 billion in net debtis expected to close in the first quarter of 2025, the company said.
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