H&E Equipment Services is buying Rental Inc., which has five branches located throughout Alabama and Florida.
Under terms of the agreement, H&E is expected to pay about $68.6 million in cash for Rental Inc., subject to customary adjustments.
The transaction is expected to close in the first quarter of 2018. The purchase is part of H&E’s ongoing strategy of acquiring rental companies to complement its existing business and footprint.
“With five branches located in Auburn-Opelika and Dothan, Alabama; and in Fort Walton Beach, Panama City and Tallahassee, Florida” says H&E’s CEO John Engquist, “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, respected equipment rental and sales company that primarily serves customers in the non-residential construction markets, according to a press release from H&E.
As of November 2017, Rental Inc. generated revenues of about $36.4 million for the last year. Its rental fleet size was $35.9 million, consisting of aerial, earthmoving, lifting, and general rental equipment. They are a Bobcat distributor in four of their five locations.
Joe Scherzinger, Rental Inc. CEO, says his company’s employees are excited to become part of the H&E team.
“While we have recognized success in the markets we serve and established outstanding customer relationships,” says Scherzinger, “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 ssoutheastern United States.”
Other recent H&E acquisitions include Contractor’s Equipment Center in the Denver, Colorado, area.