H&E Equipment Services Signs Definitive Agreement To Sell Komatsu Earthmoving Distributorship
December 12 2022 - 07:00AM
Business Wire
H&E Equipment Services Inc. (“H&E” or the “Company”)
(NASDAQ: HEES) today announced the signing of a definitive
agreement to sell its Komatsu earthmoving distribution business to
Houston, Texas based Waukesha-Pearce Industries, LLC (“WPI”). The
transaction includes rights to the distribution of earthmoving
equipment in the state of Louisiana and counties located in
southwestern Arkansas, along with a distribution facility in
Kenner, Louisiana, and certain other equipment, parts and supplies.
Also, H&E will assign to WPI the outstanding lease on its
distribution facility in Bossier City, Louisiana. H&E will
retain ownership of its rental assets located at the remaining
seven rental branches in Louisiana. The transaction is expected to
close by December 31, 2022, subject to customary closing
conditions.
Brad Barber, chief executive officer of H&E, stated, “Just
over a year ago, we completed the divestitures of our crane
business and Arkansas earthmoving distribution business,
significantly reducing our exposure to distribution activities.
With the sale of our Komatsu earthmoving distributorship in the
state of Louisiana, we are effectively completing our
transformation to a pure-play rental business. This final step will
allow us to sharpen our focus on the higher margin rental business
as we continue our evaluation of strategic-growth opportunities in
the equipment rental industry.”
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 and material handling equipment, 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, Southeast, Midwest, and Mid-Atlantic regions.
Forward-Looking Statements
Statements contained in this press release that are not
historical facts, including statements regarding the sale of the
earthmoving distribution business, further growth and expansion,
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 on the markets we serve
(including as a result of current uncertainty due to COVID-19 and
inflation); (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 which 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 ability 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. 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.
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 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/20221212005079/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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