Herc Rentals has officially signed the deal to acquire H&E Equipment Services in a transaction valued at $5.3 billion, including $1.5 billion in debt. The transaction is expected to close in mid 2025.

Herc鈥檚 agreement replaces United Rental鈥檚 $4.8 billion bid for H&E, perviously announced last month. 

On Feb. 18, 2025, United had four days to submit a revised proposal but chose not to, citing 鈥渇inancial discipline.鈥� According to reports, Herc paid a termination fee of $63.52 million to United on behalf of H&E.

Herc made its bid using the 鈥済o-shop鈥� provision included in H&E鈥檚 previously announced agreement with United Rentals. Its offer represents a 14.0% premium to United Rentals鈥� $92.00 per share offer. 

The deal will combine Herc鈥檚 $3.5 billion annual revenue business with H&E鈥檚 $1.5 billion operation, bolstering Herc鈥檚 position as number three in the North American market behind United Rentals and Sunbelt Rentals.

Larry Silber, president and CEO, Herc Rentals. (Photo: Herc Rentals)

Larry Silber, Herc鈥檚 president and CEO, said; 鈥淗erc鈥檚 cash and stock merger consideration provides H&E shareholders with an immediate and significant premium. In addition, by combining our companies, we would unlock substantial upside opportunity for both Herc and H&E shareholders.

鈥淎s our track record shows, we are a disciplined and experienced acquiror, and this transaction meets all of our value creation M&A criteria.鈥�

Silber added, 鈥淗erc has tremendous respect for H&E and the high quality of the platform and customer centric culture of the organization. This combination would strengthen Herc鈥檚 position as a premier rental company in North America.鈥�

Matthew Flannery, chief executive officer of United Rentals, said, 鈥淥ne of our key responsibilities as a management team is to be good stewards of our investors鈥� capital and our decision not to increase our offer for H&E reflects our commitment to financial discipline.

H&E is one of the top 10 largest equipment rental companies in North America and it has invested strategically in its fleet and branch network consistently over the last several years.

Herc鈥檚 combination with H&E would accelerate Herc鈥檚 strategy to outpace industry growth by substantially expanding its footprint, increased density in key regions with economies of scale, geographic and customer diversification, and a larger, younger fleet.