H&E Equipment Services to Acquire Contractors Equipment Center in Colorado
H&E Equipment Services has entered into a definitive agreement to acquire Contractors Equipment Center, a non-residential construction-focused equipment rental company located in the greater Denver area. Under the terms of the agreement, H&E is expected to pay approximately $122.4 million in cash for CEC, subject to customary adjustments.
The transaction is expected to close in the late fourth quarter of this year and is subject to customary closing conditions including Hart-Scott-Rodino Act clearance.
“From every perspective, we believe CEC meets the strict criteria we demand for every acquisition,” said John Engquist, H&E’s CEO. “CEC is a long-term proven operator that has delivered solid operational and financial resuls and possesses a highly experienced management team and employee base, which also shares our culture for best-in-class commitment to customer service and safety. As of September 30, 2017, CEC generated revenues of approximately $34 million for the last 12 months and its fleet size based on original equipment cost was $84 million. With the addition of CEC, we will double our branch count to six in Colorado, significantly expanding our presence in a high-growth construction market.
“CEC’s end-user markets and fleet mix are also highly complementary to our existing business. We welcome CEC’s employees to the H&E family. We are actively evaluating acquisitions similar to CEC that align with our growth strategy and expand our operations.”
“This acquisition is a significant complement to everyone at CEC and validates our hard work and success in the construction markets we serve in Colorado,” said Greg Harrington, president of CEC. “By joining H&E, we become part of an industry-leading integrated equipment services company with the scale to better serve our existing customers and further expand our presence in the vibrant Denver and surrounding markets. We believe our employees will also benefit from broader further career advancement opportunities.”
Dechert LLP acted as legal advisor to H&E. Catalyst Strategic Advisors -- http://www.catalyststrategicadvisors.com – acted as exclusive financial advisor to CEC, and Holland & Hart LLP acted as exclusive legal advisor to CEC.
H&E Equipment Services is based in Baton Rouge, La. No. 9 on the RER 100, H&E has 80 branches throughout the West Coast, Intermountain, Southwest, Gulf Coast, Mid-Atlantic and Southeast Regions. Contractors Equipment Center, headquartered in Commerce City, Colo., is No. 77.
