H&E deal could close in June, says Herc

Photo: Herc Rentals

Herc Holdings Inc. has said that its planned acquisition of H&E Rentals has moved a step closer to completion after it satisfied some of the regulatory requirements linked to the deal.

The regulatory requirements cover antitrust reviews and other compliance checks designed to ensure that the acquisition does not create unfair market dominance or reduce competition within the equipment rental industry.

The company said it has now met those obligations and addressed any concerns raised by regulators, clearing an important hurdle on the path to final approval.

Meanwhile, the company has also announced plans to issue $2.75 billion in senior unsecured notes to finance the acquisition, which it expects to go through by early June.

The notes, due in 2030 and 2033, are being offered through a wholly owned subsidiary, Herc Holdings Escrow, which was set up specifically to handle the financing.

If both the acquisition and the offering close at the same time, the escrow step will be skipped and the funds will be used immediately.

The news comes just three months after the company agreed a $5.3 billion deal to acquire H&E, outbidding United Rental’s $4.8 billion offer made in January.