H&E acquiring Miami equipment company for $1.2B
Baton Rouge’s H&E Equipment Services is acquiring Neff Corporation, a regional equipment rental company based in Miami, in a deal valued at $1.2 billion that will double its number of branches.
H&E says it will pay $21.07 in cash per share for Neff. The deal also includes about $690 million in debt, a news release says.
“This transaction will bring together what we believe to be two highly complementary businesses that share a commitment to addressing the increasingly complex equipment needs of our customers,” H&E CEO John Engquist says in a statement.
The companies have already signed a definitive merger agreement and their boards have approved the deal, which is expected to close late in the third quarter or early in the fourth quarter of this year.
The acquisition, Engquist says, expands H&E’s footprint across the U.S. as the company seeks to penetrate and grow in strategic markets. Its number of branches in the Gulf Coast, Mid-Atlantic, Southeast and West Coast regions will double from 78 to 147.
As of March 31, the companies’ fleets combined are valued at $2.2 billion, comprising 43,749 units. But the addition of Neff will give H&E one of the largest earthmoving rental fleets in industry—allowing H&E to gain future governmental infrastructure projects. In that segment alone, the companies’ fleets total 8,736 units worth $727 million.
The transaction is subject to federal antitrust review.