H&E Equipment Services says it has completed its acquisition of Rental Inc., an equipment rental company that serves those in nonresidential construction from five branches throughout Alabama and Florida.
While the final price was not disclosed this week, in announcing terms of the pending agreement last January, H&E said it expected to pay about $68.6 million in cash for Rental Inc., subject to customary adjustments.
A company official tells Equipment World that the final purchase price will not be disclosed until H&E reports first quarter 2018 results and files its 10-Q later this month. (The 10-Q is a quarterly report that the federal Securities and Exchange Commission requires publicly traded corporations to file.)
The five Rental Inc. branches are located in Auburn-Opelika and Dothan, Alabama; and in Fort Walton Beach, Panama City and Tallahassee, Florida.
The area now served by H&E includes western Georgia as well as south Alabama and the Florida Panhandle. Those areas are seen as recovering markets and prime expansion territory, according to the company.
“We are quickly executing on our stated strategy of expanding our business through the acquisition of rental companies,” says John Engquist, H&E’s CEO, of the completed purchase.
Other recent H&E acquisitions include Contractor’s Equipment Center in the Denver, Colorado, area.
“Since January, we have acquired two well-run businesses that complement our existing operations and broaden our geographic footprint,” Engquist says.
“With the acquisitions of CEC and Rental Inc., we have added eight branches and increased our total branch count to 88. We are continuing to evaluate additional acquisitions in addition to expanding through greenfield and warm start growth.”
The purchase is part of H&E’s ongoing strategy of acquiring rental companies to complement its existing business and footprint.