Baton Rouge-based H&E Equipment Services is set to make another multimillion acquisition, employing a strategy of growth by taking over existing companies.
H&E announced today that it has entered into a definitive agreement to acquire Rental Inc., a Florida-based construction rental company, for $68.6 million.
The deal is expected to close in the first quarter of this year and is subject to customary closing conditions. The acquisition follows H&E’s purchase of Colorado-based Contractors Equipment Center for $122.4 million, in a deal that closed earlier this month.
“The acquisition of Rental Inc. will significantly improve our ability to serve customers in South Alabama, the Florida Panhandle and Western Georgia, all of which we believe are expansion or recovering markets,” John Engquist, H&E’s CEO, says in a statement.
Rental Inc. has five branches, located in Auburn/Opelika and Dothan Alabama, Fort Walton Beach, Panama City and Tallahassee, Florida.
As of November, Rental Inc. generated revenues of approximately $36.4 million for the last 12 months, according to Enquist, and its rental fleet size was $35.9 million.
