Herc Holdings has announced the acquisition of H&E Equipment Services for $5.3 billion, enhancing its market position and operational capacity in the U.S. equipment rental industry.

Target Company Overview

Baton Rouge-based H&E Equipment Services, Inc. (HEES.O) specializes in the rental and sales of heavy equipment to various industrial and construction markets. Recently caught in a competitive bidding scenario, H&E has transitioned from a proposed sale to United Rentals to a more lucrative bid from Herc Holdings. H&E operates a widespread network of 160 branches across more than 30 states, affirming its significant presence in the equipment rental landscape.

H&E’s market positioning is substantial, allowing it to play a key role in the burgeoning demand for rental equipment, especially in light of increasing infrastructure projects in the U.S. The company’s diverse offerings and established clientele make it an attractive target for acquisition, particularly in an era where consolidation in the equipment rental industry is becoming common.

Industry Overview

The equipment rental industry in the United States has been experiencing notable growth, driven by a steady rise in construction and infrastructure spending. As companies increasingly opt for rental agreements o