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January 14, 2025

CT-based public company to buy rival in $4.8B deal

Contributed United Rentals has its Stamford headquarters at First Stamford Place

Stamford-based equipment rental giant United Rentals is buying a smaller company in the same market, H&E Equipment Services, in a $4.8 billion deal.

United said that shareholders of H&E will receive $92 per share in cash, representing a 109% premium to the stock's last close on Monday.

The acquisition will expand United's rental fleet by almost 64,000 units, and strengthen its ability to respond to growing demand in the rental market, the company said.

"This acquisition allows us to better serve our customers with expanded capacity in key markets while also providing the opportunity to further drive revenue," United Rentals CEO Matthew Flannery said in a statement announcing the acquisition.

United Rentals also expects the deal to generate about $130 million of “annualized cost synergies” within 24 months of closing, although it describes H&E’s footprint as “complementary” to its own across 30 states.

The boards of both companies have approved the deal, but it is still subject to shareholder approval and also includes a 35-day “go-shop” period, during which H&E can solicit competing offers.
 

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