United Rentals (URI) Opts Out of Pursuing Acquisition of H&E Equipment Services, Inc.

United Rentals, Inc. recently disclosed in an 8-K SEC Filing that the company will not be pursuing an acquisition of H&E Equipment Services, Inc. This decision comes following United Rentals’ announcement that it has waived its right to match a superior proposal received by H&E and expects that the previously disclosed Agreement and Plan of Merger with H&E will be terminated in accordance with the terms of the agreement.

In a press release issued on February 18, 2025, United Rentals stated that the company’s management has decided not to increase their offer for H&E, citing a commitment to financial discipline and stewardship of investors’ capital. As a result, United Rentals will allow H&E to terminate the merger agreement, enabling H&E to proceed with the acquisition proposal from another party.

Matthew Flannery, the Chief Executive Officer of United Rentals, emphasized the company’s focus on leveraging its strategies to support customer needs across safety, productivity, and sustainability. He stressed that United Rentals aims to drive long-term value for shareholders through profitable growth, strong free cash flow generation, and prudent capital allocation.

As per the terms of the merger agreement, if H&E terminates the agreement to pursue another acquisition proposal, a termination fee of approximately $63.5 million will be payable to United Rentals. Following H&E’s withdrawal from the merger agreement, United Rentals plans to resume its share repurchase program, which is a vital element of the company’s strategy to return excess capital to its shareholders. Approximately $250 million of authorization remains on United Rentals’ existing $1.5 billion share repurchase program as of February 18, 2025.

United Rentals, Inc., the largest equipment rental company globally, operates an integrated network of rental locations across North America, Europe, Australia, and New Zealand catering to construction, industrial, utility, municipal, and residential customers. The company offers a wide range of equipment for rent and prides itself on a commitment to service and innovation.

Forward-looking statements in this news release highlight the risks and uncertainties that could affect actual results. United Rentals and H&E have employed expressions such as “anticipates,” “believes,” “expects,” and others to identify these forward-looking statements aimed at adhering to the safe harbor provisions.

The company has disclosed that periodic reports filed with the SEC outline the risks and uncertainties affecting its business. United Rentals states it does not assure achieving expected outcomes and is not liable for the accuracy and completeness of forward-looking statements, updating them solely as required by applicable securities laws.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read United Rentals’s 8K filing here.

About United Rentals

United Rentals, Inc, through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.