United Rentals To Acquire H&E Equipment For $4.8 Billion

United Rentals announced on its decision to acquire rival H&E Equipment Services in a deal valued at $4.8 billion. This move comes as the company aims to capitalize on the ongoing strong demand for industrial equipment rentals, particularly in the wake of increased government infrastructure spending and persistent delays in manufacturing production.

Founded in 1961, H&E Equipment provides a wide range of rental equipment, including aerial work platforms, earthmoving machinery, material handling gear, and other specialized tools. The acquisition will significantly enhance United Rentals’ fleet, adding nearly 64,000 additional units.

Under the terms of the deal, H&E’s shareholders will receive $92 per share in cash.

“This acquisition of H&E aligns with our strategy to reinvest capital into growing our core business,” said Matthew Flannery, CEO of United Rentals.

The acquisition marks a notable step in United Rentals’ expansion efforts, which have been bolstered by consistent revenue growth over the past four years. H&E Equipment’s shares surged nearly 106% in premarket trading following the announcement, while United Rentals’ stock saw a 3% increase.

The deal highlights the continuing strength of the industrial equipment rental sector, fueled by robust demand from commercial construction firms and infrastructure projects.