BATON ROUGE, La.--(BUSINESS WIRE)--Jan. 8, 2019--
H&E Equipment Services, Inc. (NASDAQ: HEES) today announced its entry
into a definitive agreement to acquire We-Rent-It (WRI), a
non-residential construction-focused equipment rental company with six
branches serving the growing central Texas market. Under the terms of
the agreement, H&E is expected to pay approximately $100 million in cash
for WRI, subject to customary adjustments. The transaction is expected
to close in the first quarter of 2019 and is subject to customary
closing conditions including Hart-Scott-Rodino Act clearance.
Brad Barber, H&E’s Chief Executive Officer and President, said, “We are
executing on our stated growth strategy by announcing a definitive
agreement to acquire WRI, 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. As of November 30,
2018, WRI generated revenues of approximately $35.6 million for the last
twelve months and its fleet size was $75.9 million, based on original
equipment cost. WRI is a well-run and respected rental operator with
longstanding customer relationships and we look forward to their
employees joining the H&E family.”
About H&E Equipment Services, Inc.
The Company is one of the largest integrated equipment services
companies in the United States with 89 full-service facilities
throughout the West Coast, Intermountain, Southwest, Gulf Coast,
Mid-Atlantic and Southeast regions. The Company is focused on heavy
construction and industrial equipment and rents, sells, and provides
parts and services support for four core categories of specialized
equipment: (1) hi-lift or aerial platform equipment; (2) cranes; (3)
earthmoving equipment; and (4) industrial lift trucks. By providing
equipment rental, sales, on site parts, repair, and maintenance
functions under one roof, the Company is a one-stop provider for its
customers' varied equipment needs. This full service approach provides
the Company with multiple points of customer contact, enabling it to
maintain a high quality rental fleet, as well as an effective
distribution channel for fleet disposal and provides cross-selling
opportunities among its new and used equipment sales, rentals, parts
sales, and services operations.
Forward-Looking Statements
Statements contained in this press release that are not historical
facts, including statements about H&E’s beliefs and expectations, are
“forward-looking statements” within the meaning of the federal
securities laws. Statements that are not historical facts, including
statements about our beliefs and expectations are forward-looking
statements. Statements containing the words “may”, “could”, “would”,
“should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”,
“target”, “project”, “intend”, “foresee” and similar expressions
constitute forward-looking statements. Forward-looking statements
involve known and unknown risks and uncertainties, which could cause
actual results to differ materially from those contained in any
forward-looking statement. Such factors include, but are not limited to,
the following: (1) the risk that any savings and synergies anticipated
from the acquisition are not realized or take longer than anticipated to
be realized; (2) the occurrence of any event, change or other
circumstances that could give rise to the termination of the purchase
agreement, the failure of the closing conditions included in the
purchase agreement to be satisfied (or any material delay in satisfying
such conditions), or any other failure to consummate the transactions
contemplated thereby; (3) the risk of unsuccessful integration of H&E’s
and WRI’s businesses, or that such integration will be materially
delayed or will be more costly or difficult than anticipated; (4) the
amount of the costs, fees, expenses and charges related to the
acquisition; (5) the ability to obtain required governmental approvals
of the proposed merger, including approval under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976; (6) any additional costs related to
the acquisition or the other transactions contemplated thereby as a
result of unexpected factors or events; (7) any negative effects of this
announcement or the consummation of the acquisition on H&E's or WRI's
supplier, customer or other business relationships or the market price
of H&E’s common stock or other securities; (8) the diversion of
management time on transaction-related issues; (9) other business
effects, including the effects of general industry, market, economic,
political or regulatory conditions, future exchange or interest rates or
changes in tax laws, regulations, rates and policies, including the
uncertainty regarding rules and regulations with respect to the
foregoing that may be affected by the United States Congress and Trump
administration; (10) the expected business outlook, anticipated
financial and operating results of H&E generally; and (11) other factors
discussed in our public filings, including the risk factors included in
H&E’s most recent Annual Report on Form 10-K. Investors, potential
investors and other readers are urged to consider these factors
carefully in evaluating the forward-looking statements and are cautioned
not to place undue reliance on such forward-looking statements. These
statements are based on the current beliefs and assumptions of H&E’s
and, as applicable, WRI’s management, which in turn are based on
currently available information and important, underlying assumptions.
Except as required by applicable law, including the securities laws of
the United States and the rules and regulations of the Securities and
Exchange Commission, H&E is under no obligation to publicly update or
revise any forward-looking statements after this press release, whether
as a result of any new information, future events or otherwise. Although
H&E and WRI believe that the expectations reflected in the
forward-looking statements are reasonable, they cannot guarantee future
results or performance, including the consummation of the transactions
contemplated by the purchase agreement or any anticipated effects of the
acquisition.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190108005357/en/
Source: H&E Equipment Services, Inc.
Leslie S. Magee
Chief Financial Officer
225-298-5261
lmagee@he-equipment.com
Kevin
S. Inda
Vice President of Investor Relations
225-298-5318
kinda@he-equipment.com