Business
United Rentals, Inc. Will No Longer Pursue the Acquisition of H&E Equipment Services, Inc.
STAMFORD, Conn., February 18, 2025--United Rentals, Inc. (NYSE: URI) ("United Rentals" or "the company") today announced that it has notified H&E Equipment Services, Inc. ("H&E") that it does not intend to submit a revised proposal for the acquisition of H&E, which will permit H&E to terminate United Rentals’ previously announced merger agreement with H&E.
About this update from United Rentals, Inc.
[{"type":"text","content":"STAMFORD, Conn., February 18, 2025--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI) ("United Rentals" or "the company") today announced that it has notified H&E Equipment Services, Inc. ("H&E") that it does not intend to submit a revised proposal for the acquisition of H&E, which will permit H&E to terminate United Rentals’ previously announced merger agreement with H&E.","length":425,"tagName":"p"},{"type":"text","content":"Matthew Flannery, chief executive officer of United Rentals, said, "One of our key responsibilities as a management team is to be good stewards of our investors’ capital and our decision not to increase our offer for H&E reflects our commitment to financial discipline. We remain focused on leveraging our one-stop shop strategy, supported by world-class service and innovative solutions, to help our customers achieve their goals across safety, productivity and sustainability. And we will continue to follow our well-proven strategy focused on profitable growth, strong free cash flow generation and prudent capital allocation to drive compelling long-term value for our shareholders."","length":701,"tagName":"p"},{"type":"text","content":"As previously announced, on January 14, 2025, United Rentals and H&E entered into a merger agreement. On February 16, 2025, H&E notified United Rentals that it had received a superior acquisition proposal from a strategic bidder, and that absent an improved bid by United Rentals, H&E intends to terminate the merger agreement to enter into an agreement for such acquisition proposal. Prior to terminating the merger agreement H&E was required to negotiate in good faith with United Rentals for four business days. United Rentals has waived this period.","length":569,"tagName":"p"},{"type":"text","content":"Under the merger agreement, H&E is required to pay a termination fee of approximately $63.5 million to United Rentals if H&E terminates the merger agreement to enter into an agreement for such acquisition proposal.","length":222,"tagName":"p"},{"type":"text","content":"Following H&E’s termination of the merger agreement, United Rentals will be immediately restarting its share repurchase program which remains a key element of the company’s strategy for returning excess capital to its shareho...