United Rentals, Inc. Will No Longer Pursue the Acquisition of H&E Equipment Services, Inc.
United Rentals (NYSE: URI) has announced it will not submit a revised proposal for the acquisition of H&E Equipment Services, following H&E's notification of receiving a superior acquisition proposal from another strategic bidder. The decision demonstrates URI's commitment to financial discipline in capital allocation.
The original merger agreement was entered on January 14, 2025. H&E notified URI on February 16, 2025, about the competing offer. Upon H&E's termination of the merger agreement, they will be required to pay URI a termination fee of approximately $63.5 million.
URI will immediately restart its share repurchase program, with approximately $250 million remaining from its existing $1.5 billion authorization as of February 18, 2025. The company maintains its focus on profitable growth, strong free cash flow generation, and prudent capital allocation.
United Rentals (NYSE: URI) ha annunciato che non presenterà una proposta rivista per l'acquisizione di H&E Equipment Services, a seguito della notifica di H&E di aver ricevuto una proposta di acquisizione superiore da un altro offerente strategico. La decisione dimostra l'impegno di URI per la disciplina finanziaria nell'allocazione del capitale.
L'accordo di fusione originale è stato firmato il 14 gennaio 2025. H&E ha notificato a URI il 16 febbraio 2025 riguardo l'offerta concorrente. Con la risoluzione dell'accordo di fusione da parte di H&E, sarà tenuta a pagare a URI una penale di risoluzione di circa 63,5 milioni di dollari.
URI riavvierà immediatamente il suo programma di riacquisto di azioni, con circa 250 milioni di dollari rimanenti dalla sua autorizzazione esistente di 1,5 miliardi di dollari al 18 febbraio 2025. L'azienda mantiene il suo focus sulla crescita redditizia, sulla generazione di un forte flusso di cassa libero e su un'allocazione prudente del capitale.
United Rentals (NYSE: URI) ha anunciado que no presentará una propuesta revisada para la adquisición de H&E Equipment Services, tras la notificación de H&E de haber recibido una propuesta de adquisición superior de otro postor estratégico. La decisión demuestra el compromiso de URI con la disciplina financiera en la asignación de capital.
El acuerdo de fusión original se firmó el 14 de enero de 2025. H&E notificó a URI el 16 de febrero de 2025 sobre la oferta competidora. Al rescindir el acuerdo de fusión, H&E deberá pagar a URI una multa de rescisión de aproximadamente 63,5 millones de dólares.
URI reiniciará de inmediato su programa de recompra de acciones, con aproximadamente 250 millones de dólares restantes de su autorización existente de 1.5 mil millones de dólares a partir del 18 de febrero de 2025. La empresa mantiene su enfoque en el crecimiento rentable, la generación de fuerte flujo de efectivo libre y una asignación prudente de capital.
유나이티드 렌탈스(뉴욕증권거래소: URI)는 H&E 장비 서비스 인수에 대한 수정된 제안을 제출하지 않겠다고 발표했습니다. 이는 H&E가 다른 전략적 입찰자로부터 더 나은 인수 제안을 받았다는 통지를 받은 후입니다. 이 결정은 URI의 자본 할당에 대한 재정적 규율에 대한 의지를 보여줍니다.
원래의 합병 계약은 2025년 1월 14일에 체결되었습니다. H&E는 2025년 2월 16일 URI에 경쟁 제안에 대해 통지했습니다. H&E가 합병 계약을 종료함에 따라 URI에 약 6,350만 달러의 해약금을 지급해야 합니다.
URI는 즉시 자사주 매입 프로그램을 재개하며, 2025년 2월 18일 기준으로 기존 15억 달러의 승인에서 약 2억 5천만 달러가 남아 있습니다. 회사는 수익성 있는 성장, 강력한 자유 현금 흐름 창출 및 신중한 자본 할당에 집중하고 있습니다.
United Rentals (NYSE: URI) a annoncé qu'elle ne soumettra pas de proposition révisée pour l'acquisition de H&E Equipment Services, suite à la notification de H&E d'avoir reçu une proposition d'acquisition supérieure d'un autre enchérisseur stratégique. Cette décision démontre l'engagement de URI envers la discipline financière dans l'allocation du capital.
L'accord de fusion original a été signé le 14 janvier 2025. H&E a informé URI le 16 février 2025 de l'offre concurrente. Suite à la résiliation de l'accord de fusion par H&E, celle-ci devra verser à URI une indemnité de résiliation d'environ 63,5 millions de dollars.
URI relancera immédiatement son programme de rachat d'actions, avec environ 250 millions de dollars restants de son autorisation existante de 1,5 milliard de dollars au 18 février 2025. L'entreprise maintient son attention sur une croissance rentable, une forte génération de flux de trésorerie libre et une allocation prudente du capital.
United Rentals (NYSE: URI) hat angekündigt, dass es kein überarbeitetes Angebot für die Übernahme von H&E Equipment Services vorlegen wird, nachdem H&E URI darüber informiert hat, ein überlegenes Übernahmeangebot von einem anderen strategischen Bieter erhalten zu haben. Die Entscheidung zeigt URIs Engagement für finanzielle Disziplin bei der Kapitalallokation.
Der ursprüngliche Fusionsvertrag wurde am 14. Januar 2025 unterzeichnet. H&E informierte URI am 16. Februar 2025 über das konkurrierende Angebot. Nach der Kündigung des Fusionsvertrags muss H&E URI eine Abbruchgebühr von etwa 63,5 Millionen Dollar zahlen.
URI wird sofort sein Aktienrückkaufprogramm wieder aufnehmen, mit ungefähr 250 Millionen Dollar verbleibend aus der bestehenden Genehmigung von 1,5 Milliarden Dollar zum 18. Februar 2025. Das Unternehmen konzentriert sich weiterhin auf profitables Wachstum, starke Generierung von freiem Cashflow und eine sorgfältige Kapitalallokation.
- Will receive $63.5 million termination fee from H&E
- Resuming share repurchase program with $250 million remaining authorization
- Demonstrates financial discipline in M&A decisions
- Loss of potential business expansion opportunity through H&E acquisition
- Failed merger attempt could impact short-term growth strategy
Insights
The termination of URI's pursuit of H&E Equipment Services reveals several critical insights about both the company and the equipment rental industry landscape. The emergence of a competing strategic bidder willing to outbid URI - the industry leader with $48.4B market cap - signals robust consolidation interest in the equipment rental sector and potentially higher valuations than URI's initial assessment.
URI's decision to walk away rather than enter a bidding war demonstrates exemplary capital allocation discipline. The
This development carries broader implications for the equipment rental industry:
- Signals potentially higher valuation multiples for mid-sized equipment rental companies
- Indicates strong strategic interest in consolidation from non-traditional or international players
- Reinforces URI's commitment to disciplined growth rather than empire-building
The company's emphasis on their "one-stop shop strategy" and focus on organic growth through service innovation and sustainability initiatives suggests confidence in their existing market position. This approach, combined with their proven free cash flow generation capabilities, may ultimately prove more valuable to shareholders than an expensive acquisition that could have diluted returns.
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.”
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.
Under the merger agreement, H&E is required to pay a termination fee of approximately
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 shareholders. As of February 18, 2025, approximately
About United Rentals
United Rentals, Inc. is the largest equipment rental company in the world. The company has an integrated network of 1,591 rental locations in
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. Forward-looking statements involve significant risks and uncertainties that may cause actual results to differ materially from such forward-looking statements. These statements are based on current plans, estimates and projections, and, therefore, you should not place undue reliance on them. No forward-looking statement, including any such statement concerning the completion and anticipated benefits of the proposed transaction, can be guaranteed, and actual results may differ materially from those projected. Forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and future financial results of the equipment rental industries, and other legal, regulatory and economic developments. United Rentals and H&E use words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “targets,” “potential,” “continue,” “guidance” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe harbor provisions of the PSLRA. Actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including, but not limited to, those described in the SEC reports filed by United Rentals. United Rentals gives no assurance that it will achieve their expectations and do not assume any responsibility for the accuracy and completeness of the forward-looking statements. The forward-looking statements speak only as of the date hereof. United Rentals undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect the business of United Rentals described in the “Risk Factors” section of the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC by United Rentals.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250218821500/en/
Elizabeth Grenfell
Vice President, Investor Relations
O: (203) 618-7125
investors@ur.com
Source: United Rentals, Inc.
FAQ
Why did United Rentals (URI) withdraw from the H&E Equipment acquisition?
How much is the termination fee H&E must pay to URI?
What is the remaining amount in URI's share repurchase program as of February 2025?
When was the original merger agreement between URI and H&E signed?
What will URI do after the failed H&E acquisition attempt?
