H&E Equipment Services Inc. announced its entry into a definitive agreement to acquire Rental Inc., a non-residential construction-focused equipment rental company with five branches located throughout Alabama and Florida. Under the terms of the agreement, H&E is expected to pay approximately $68.6 million in cash for Rental Inc., subject to customary adjustments. The transaction is expected to close in the first quarter of 2018, and is subject to customary closing conditions.
John Engquist, H&E’s chief executive officer, said, “With five branches located in Auburn/Opelika and Dothan Alabama, Fort Walton Beach, Panama City and Tallahassee, Florida, the acquisition of Rental Inc. will significantly improve our ability to serve customers in South Alabama, the Florida Panhandle and Western Georgia, all of which we believe are expansion or recovering markets. Rental Inc. is a well-run and respected equipment rental and sales company that primarily serves customers in the non-residential construction markets. As of November 2017, Rental Inc. generated revenues of approximately $36.4 million for the last 12 months and its rental fleet size was $35.9 million, consisting of aerial, earthmoving, lifting, and general rental equipment. They are also a Bobcat distributor in four of their five locations.”
Joe Scherzinger, Rental Inc. chief executive officer, said, “Our Company is very excited to become part of the H&E team. While we have recognized success in the markets we serve and established outstanding customer relationships, we believe H&E’s scale and access to capital are significant benefits to both our customers and H&E’s ability to expand its business in this part of the Southeastern United States.”