BATON ROUGE, La. — H&E Equipment Services earlier this month completed its previously announced acquisition of all the capital stock of La Mirada, Calif.-based Eagle High Reach Equipment, for about $59.9 million, subject to post-closing adjustments. H&E funded the acquisition from its recently completed initial public offering, in which it raised almost $200 million.
H&E also assumed Eagle debts of about $2 million. Eagle is a privately held construction and industrial equipment rental company serving the southern California construction and industrial markets from five locations. About 75 percent of Eagle's revenue comes from the rental of aerial work platforms.
“We feel this is a positive development for our company as it is our initial entry into the high-growth Southern California market and will provide us with opportunities for further growth,” said president and CEO John Engquist.
Last month H&E completed its public offering of common stock at a price of $18 per share. The company sold 10.9 million shares in the offering, and an additional 1.6 million shares were sold pursuant to an over-allotment option exercised by the underwriters.
The company's stock began trading on the Nasdaq National Market on Jan. 31 under the symbol HEES.
Total net proceeds to the company from the offering, after deducting underwriter discounts and commissions and estimated offering expenses, are about $198.9 million. The company intended to use the net proceeds to fund its acquisition of Eagle High Reach; purchase rental equipment currently under operating leases; pay deferred compensation owed to a current executive and a former executive; and, with the remaining proceeds, repay borrowings under the company's senior secured credit facility and use for general corporate purposes.
Based in Baton Rouge, La., H&E Equipment Services is No. 10 on the RER 100 and now has 47 branches throughout the Intermountain, Southwest, Gulf Coast and Southeast regions of the United States.
