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H&E to acquire We-Rent-It
Posted on Tuesday, 08 January 2019 14:21
H&E Equipment Services has agreed to acquire non-residential construction equipment rental company We-Rent-It for USD 100.00 million in cash, subject to customary adjustments.
The target loans customers a range of air compressors, electric tools, forklift trucks, mowers and generators, among other items.
We-Rent-It generated revenue of about USD 35.60 million in the 12 months to 30th November 2018, and had a fleet size worth USD 75.90 million, based on original equipment costs, according to H&E’s chief executive Brad Barber.
He added: “We are executing on our stated growth strategy by announcing a definitive agreement to acquire WRI [We-Rent-It], which we believe is similar in terms of solid operational and financial performance to our two previous acquisitions in 2018.
“The addition of WRI’s six branches will significantly expand our presence in the vibrant central Texas markets of Austin, Bryan/College Station, and San Antonio metro areas.”
Closing is slated for the first quarter of 2019 and is subject to the usual raft of regulatory and antitrust clearances.
H&E bought Rental, a Florida-based non-residential construction-focused equipment rentals provider, for USD 68.60 million last year.
The group’s largest ever announced acquisition was in 2017 for Neff Corporation, a company also operating in the industry, for USD 1.20 billion.
Shares in H&E closed up 5 per cent to USD 23.24 yesterday, valuing the business at around USD 830.47 million.
The company claims to be one of the largest integrated equipment service groups in the US focused on the heavy construction and industrial sectors.
In the nine months ended 30th September 2018, H&E recorded total revenue of USD 892.98 million, a 21.4 per cent increase on USD 735.35 million in the corresponding period of 2017.
Net income for the timeframe totalled USD 51.56 million, compared to USD 23.73 million in Q1-3 2017.
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