Herc’s offer for H&E extended again

Image: Herc Rentals

Herc has extended its tender offer to acquire H&E Rentals, as it works to complete regulatory approvals and finalise the $5.3 billion deal.

The company had already extended the deal to May 13, but will now have until 22 May to iron out the details.

Herc said the offer was extended “to allow additional time for the satisfaction of the remaining conditions of the tender offer, including receipt of applicable regulatory approvals.”

Under the terms of the offer, H&E shareholders will receive $78.75 in cash and 0.1287 shares of Herc common stock for each H&E share, as first announced on February 19, 2025.

The combination includes the assumption of $1.5 billion in H&E debt and aims to merge Herc’s $3.5 billion annual revenue with H&E’s $1.5 billion operation, bolstering Herc’s position as the third-largest rental company in North America.

The deal follows a bidding contest in which Herc outpaced a rival $4.8 billion offer from United Rentals. That offer, made public in mid-February, was ultimately withdrawn after United declined to revise its proposal, citing “financial discipline.”

Herc’s bid, made under a “go-shop” provision in H&E’s original deal with United, represented a 14% premium over the United offer. Herc also recently announced that it has paid a $63.52 million termination fee to United on behalf of H&E to enable the new agreement.

Herc President and CEO Larry Silber said the acquisition “meets all of our value creation M&A criteria” and will deliver “immediate and significant” value to shareholders. “By combining our companies, we would unlock substantial upside opportunity for both Herc and H&E shareholders,” Silber said, praising H&E’s customer-focused culture and high-quality platform.

The merger is expected to bring significant strategic benefits, including geographic expansion, greater fleet scale, and increased customer diversification. It also marks a major step in Herc’s strategy to grow faster than the overall equipment rental market.

The transaction is expected to close in mid-2025, pending the completion of all remaining regulatory and closing conditions.

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