United Rentals To Acquire H&E Equipment Services For Approx. $4.8 Bln, Stock Up In Pre-Market

(RTTNews) - United Rentals, Inc. (URI), Tuesday announced its plan to buy H&E Equipment Services, Inc. (HEES), an equipment rental company, for $92 per share in cash, amounting to a total of nearly $4.8 billion, including net debt of about $1.4 billion.

Through this deal, the company aims to grow its core business, boost revenue through cross-selling strategy and enhance shareholder value.

The acquisition is expected to generate approximately $130 million of annualized cost synergies within 2 years of closing. It is projected to be accretive to United Rentals adjusted earnings per share and free cash flow generation in its first year post-close.

The deal is set to close in the first quarter of 2025.

In the pre-market hours, United Rentals' stock is trading at $713.21, up 3.50 percent on the New York Stock Exchange.