BATON ROUGE, La.--(BUSINESS WIRE)--Aug. 16, 2017--
H&E Equipment Services, Inc. (NASDAQ: HEES) (the “Company” or “H&E”)
today announced that it has notified Neff Corporation (“Neff”) that it
does not intend to submit a revised proposal for the acquisition of
Neff, which will permit Neff to terminate H&E’s previously announced
merger agreement with Neff.
In connection with that determination, John Engquist, CEO of H&E, stated
that, “We will remain disciplined on the price that we pay for assets.
We intend instead to pursue an accelerated strategy of greenfield
expansion and opportunistic roll-up acquisitions which we believe will
be a higher and better use for our resources.”
As previously announced, on July 14, 2017, H&E and Neff entered into a
merger agreement pursuant to which H&E agreed to acquire Neff for $21.07
per share, subject to certain downward adjustments. On August 13, 2017,
Neff notified H&E that it had received a superior acquisition proposal
from a strategic bidder to acquire Neff for $25.00 per share, and that
Neff intends to terminate the merger agreement to enter into an
agreement for such acquisition proposal. Prior to terminating the merger
agreement Neff was required to negotiate in good faith with H&E for five
business days. H&E has waived this period.
Under the merger agreement, Neff is required to pay a termination fee of
approximately $13.2 million to H&E if Neff terminates the merger
agreement to enter into an agreement for such acquisition proposal.
About H&E Equipment Services, Inc.
H&E is one of the largest integrated equipment services companies in the
United States with 79 full-service facilities throughout the West Coast,
Intermountain, Southwest, Gulf Coast, Mid-Atlantic and Southeast
regions. H&E 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 a multitude of services including equipment
rental, sales, on-site parts and repair and maintenance, H&E is a
one-stop provider for its customers' varied equipment needs. This full
service approach provides H&E 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,
rental, 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) general economic conditions and construction and
industrial activity in the markets where we operate in North America;
(2) our ability to forecast trends in our business accurately, and the
impact of economic downturns and economic uncertainty in the markets we
serve; (3) the impact of conditions in the global credit and commodity
markets and their effect on construction spending and the economy in
general; (4) relationships with equipment suppliers; (5) increased
maintenance and repair costs as we age our fleet and decreases in our
equipment’s residual value; (6) our indebtedness; (7) risks associated
with the expansion of our business and any potential acquisitions we may
make, including any related capital expenditures; (8) our possible
inability to integrate any businesses we acquire; (9) competitive
pressures; (10) security breaches and other disruptions in our
information technology systems; (11) adverse weather events or natural
disasters; (12) compliance with laws and regulations, including those
relating to environmental matters and corporate governance matters; (13)
the impact of this announcement or the termination of the merger
agreement with Neff on our stock price and our business; and (14) other
factors discussed in our public filings, including the risk factors
included in the Company’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. Except as required by applicable law, including the
securities laws of the United States and the rules and regulations of
the SEC, we are under no obligation to publicly update or revise any
forward-looking statements after the date of this release. These
statements are based on the current beliefs and assumptions of H&E’s
management, which in turn are based on currently available information
and important, underlying assumptions. 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. Investors, potential investors, security holders and other
readers are urged to consider the above mentioned factors carefully in
evaluating the forward-looking statements and are cautioned not to place
undue reliance on such forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170816005281/en/
Source: H&E Equipment Services, Inc.
H&E Equipment Services, Inc.
Leslie S. Magee, 225-298-5261
Chief
Financial Officer
lmagee@he-equipment.com
or
Kevin
S. Inda, 225-298-5318
Vice President of Investor Relations
kinda@he-equipment.com
