H&E Equipment Services Signs Definitive Agreement To Acquire One Source Equipment Rental, Inc.
September 19 2022 - 7:00AM
Business Wire
H&E Equipment Services, Inc. (“H&E” or the “Company”)
(NASDAQ: HEES) today announced the signing of a definitive
agreement to acquire One Source Equipment Rental, Inc. (“One
Source”), a provider of non-residential construction and industrial
equipment with operations in the Midwest and Southern U.S. One
Source, which is employee owned, operates 10 branches, including
three locations in each of Illinois and Indiana, two locations in
Tennessee and one in each of Kentucky and Alabama. Under the terms
of the definitive agreement, H&E is expected to pay $130
million in cash for One Source, before customary adjustments. The
transaction is expected to close during the fourth quarter of 2022,
following regulatory clearance and the completion of other
customary closing conditions.
Brad Barber, Chief Executive Officer of H&E Equipment
Services, Inc., noted the excellent strategic rationale for the
transaction, stating, “For more than 20 years, One Source has
emphasized a culture where equipment reliability and customer
support and satisfaction are vital features for success, resulting
in an equipment rental operation with strong consumer loyalty
throughout its branch network. These important attributes, which
are underscored by a dedicated base of employee owners, offer an
exceptional cultural fit with H&E. Also, the transaction will
expand our geographic footprint into the Midwest with operations in
Illinois and Indiana, as well as operations in Kentucky. Finally,
the demonstrated success of our accelerated warm start plan, with
15 warm start and greenfield locations established since early
2021, will prove beneficial as we evaluate post-integration growth
opportunities in the Midwest and other surrounding regions with
attractive prospects for expansion.”
Over the last twelve months ended July 31, 2022, One Source has
generated revenues of approximately $59 million with a fleet size,
as measured by original equipment cost (OEC), of approximately $138
million. One Source’s fleet consists primarily of aerial work
platforms, material handling equipment and other general equipment
lines.
Following the closing of the transaction, H&E’s equipment
rental operations will extend across 117 branch locations in 28
states.
About H&E Equipment Services, Inc.
Founded in 1961, H&E Equipment Services, Inc. is one of the
largest rental equipment companies in the nation. The Company’s
fleet is among the industry’s youngest and most versatile with a
superior equipment mix comprised of aerial work platforms,
earthmoving, material handling, and other general and specialty
lines. H&E serves a diverse set of end markets in many
high-growth geographies including branches throughout the Pacific
Northwest, West Coast, Intermountain, Southwest, Gulf Coast States,
Southeast, Midwest, and Mid-Atlantic regions.
Forward-Looking Statements
Statements contained in this press release that are not
historical facts, including statements about the consummation of
the proposed transaction, opportunities and timing, and H&E’s
beliefs and expectations, are “forward-looking statements” within
the meaning of the federal securities laws. 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)
risks related to the impact of the COVID-19 global pandemic, such
as the scope and duration of the outbreak, government actions and
restrictive measures implemented in response to the pandemic,
material delays and cancellations of construction or infrastructure
projects, labor shortages, supply chain disruptions and other
impacts to the business; (2) general economic conditions and
construction and industrial activity in the markets where we
operate in North America; (3) our ability to forecast trends in our
business accurately, and the impact of economic downturns and
economic uncertainty in the markets we serve (including as a result
of current uncertainty due to COVID-19); (4) the impact of
conditions in the global credit and commodity markets (including as
a result of current volatility and uncertainty in credit and
commodity markets due to COVID-19) and their effect on construction
spending and the economy in general;(5) trends in oil and natural
gas that could adversely affect the demand for our services and
products; (6) relationships with equipment suppliers; (7) increased
maintenance and repair costs as we age our fleet and decreases in
our equipment’s residual value; (8) our indebtedness; (9) risks
associated with the expansion of our business and any potential
acquisitions we may make, including any related capital
expenditures, or our inability to consummate such acquisitions;
(10) our possible inability to integrate any businesses we acquire;
(11) competitive pressures; (12) security breaches and other
disruptions in our information technology systems; (13) adverse
weather events or natural disasters; (14) compliance with laws and
regulations, including those relating to environmental matters,
corporate governance matters and tax matters, as well as any future
changes to such laws and regulations; and (15) 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 Securities and Exchange Commission, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220919005201/en/
Leslie S. Magee Chief Financial Officer 225-298-5261
lmagee@he-equipment.com
Jeffrey L. Chastain Vice President of Investor Relations
225-952-2308 jchastain@he-equipment.com
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