Herc Holdings and H&E Equipment Transitioning Towards Merger Completion
Herc Holdings and H&E Equipment Services Announce Tender Offer Expiration
In a significant industry development, Herc Holdings Inc. (NYSE: HRI) and H&E Equipment Services, Inc. (NASDAQ: HEES) have shared the news regarding the expiration of the tender offer for H&E shares. The announcement comes after an extended period of anticipation for stakeholders as both companies work toward solidifying their union.
Tender Offer Details
The tender offer, extending to each outstanding H&E common stock, included an enticing bid of $78.75 in cash alongside a fractional share of Herc stock valued at 0.1287. This approach represents Herc’s commitment to ensuring a valuable return for H&E shareholders. As reported, the tender offer opened through a structured agreement dated February 19, leading to an impressive turnout of 25,369,090 validly tendered shares, equating to approximately 69.33% of H&E's outstanding stock.
Merger Implementation Strategy
With the expiration period for the offer ending at 11:59 p.m. Eastern Time, the management teams of Herc and H&E are poised for a seamless transition into the closing phase expected to conclude shortly. The integration procedure involves the acceptance of all validly tendered shares, thereby allowing Herc and its subsidiary, Merger Sub Inc., to acquire H&E efficiently.
Expected Closing Timeline
The companies anticipate the closing date for the acquisition to occur on June 2. Upon finalization, Herc will manage to convert the remaining H&E shares into offerings aligned with the previously defined tender price. The success of this merger places Herc in a commanding position within the equipment rental sector.
About Herc Holdings Inc.
Herc Holdings has cultivated a strong presence since its foundation in 1965, boasting a full-line rental service with approximately 453 locations across the continent. In 2024, the company reported total revenues nearing $3.6 billion. Herc's extensive rental fleet encompasses a variety of equipment designed to help customers enhance their operational efficiency and safety standards. This includes aerial lifts, earthmoving machinery, and vital support equipment.
Innovative Offerings
Herc’s ProSolutions® services extend beyond traditional rentals, providing tailored solutions that cater to unique industry needs, including power generation and climate control solutions. With a robust workforce of around 7,600 employees, Herc is dedicated to empowering customers and fostering sustainable growth through effective equipment rental strategies.
About H&E Equipment Services, Inc.
Established in 1961, H&E Equipment Services is renowned for being one of the leading rental companies across various sectors. With a comprehensive fleet, H&E provides essential tools ranging from aerial work platforms to specialty machinery, providing invaluable resources to diverse markets. The company has strategically placed branches throughout numerous high-growth regions, ensuring accessibility for its clientele.
Future Prospects
The merger with Herc signals exciting potential for H&E to expand its reach and operational efficiency as part of a larger entity. Stakeholders from both companies eagerly await the implications of this acquisition, particularly regarding service enhancements and market positioning post-merger.
Frequently Asked Questions
What is the current status of the tender offer for H&E shares?
The tender offer has expired with approximately 69.33% of H&E shares validly tendered, paving the way for the upcoming merger completion.
When is the expected closing date for the merger?
The companies anticipate finalizing the merger on June 2, positioning Herc to further integrate H&E operations.
What are the primary benefits of this merger for Herc Holdings?
Herc's acquisition of H&E is expected to enhance operational capabilities, expand market reach, and enhance service offerings to customers across various sectors.
How does the merger impact H&E’s operations?
Following the merger, H&E will function as a wholly-owned subsidiary of Herc, facilitating operational efficiencies and potential service improvements.
Who can I contact for more information about the corporations?
For inquiries, Leslie Hunziker is the contact for Herc Holdings, and Leslie S. Magee along with Jeffrey L. Chastain are contacts for H&E Equipment Services.
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