G.F. Gay Le Breton and Liam Norton, Chaffe & Associates Inc.
https://bit.ly/Chaffe-CB-Mar25
After agreeing to sell to United Rental (URI.N) in January, Baton Rouge-based H&E Equipment Services Inc. (HEES.O) found itself at the center of a high stakes bidding war between two industry giants.
During H&E’s 35-day “go-shop” period following the United Rental bid, Herc Holdings (HRI.N) offered a transaction valued at $5.3 billion, including assumption of about $1.5 billion in debt. This topped United Rental’s $4.8 billion bid.
The Herc proposal was $104.59 per share, in a combination of $78.75 cash and 0.1287 shares of Herc common stock per H&E share. This offer not only represented a 14% premium over the equity bid of industry leader United Rental, but also provided H&E shareholders with the opportunity to participate in the future growth of the combined entity. H&E shareholders will have a 14.1% interest in the expanded company.
H&E notified United Rental in mid-February that it intended to cancel their merger agreement and enter into one with Herc instead. United decided not to submit a revised proposal, and will be paid a termination fees of $63.52 million, which Herc has agreed to pay on H&E behalf.
The cash and stock bid will combine the third and the fifth largest firms that rent machinery to industrial and construction markets. H&E is seen as a strategic move to expand Herc’s capacity in significant U.S. markets by leveraging H&E’s extensive network of 160 branches across over 30 states. The deal is expected to close by the middle of 2025.
Larry Silber, CEO of Herc Holdings, highlighted the strategic benefits of the acquisition, stating, “Herc’s combination with H&E would accelerate our proven strategy to meaningfully outpace industry growth by providing a substantially expanded footprint, increased density in key regions, and a larger, younger fleet.” The deal is expected to generate approximately $300 million in run-rate EBITDA opportunities, significantly enhancing Herc’s market position.
Also in February, Danos Inc., the family-owned energy services provider based in Grey, Louisiana, announced the acquisition of substantially all the assets of X-Pro Valve LLC, along with Surplus Valve Warehouse LLC. This acquisition increases Danos’ valve and wellhead service offering, strengthening its position in providing premium valve services to the industrial and energy industries. The financial terms of the transaction were not disclosed.
Houma-based X-Pro Valve is known for its expertise in supplying and refurbishing valves to industry, with attention to specialty valves. Surplus Valve Warehouse owns the inventory of X-Pro, including surplus and reconditioned valves.
Paul Danos, CEO of Danos, commented on the acquisition, saying, “This opportunity will strengthen our capabilities and allow us to better serve our customers. We are excited to provide greater value to existing Danos customers while introducing new customers to our highly skilled service team, led by our Operations Manager Dustin Hebert, a 20-year industry veteran.”
Danos has a strategy of both organic growth and growth by acquisition. The company has made three acquisitions in six years, including in 2024 the purchase of Performance Energy Services.
In another February transaction featuring an energy-adjacent Louisiana company, Moxie Media, dba Moxie Training, sold to Mintra, a leading provider of digital learning and workforce management solutions based in Norway. Terms of the transaction were not announced. Moxie, based in New Orleans, specializes in training content and media production for safety-critical energy, maritime, and industrial sectors.
Moxie has built a nearly 40-year-long reputation by delivering high-quality, bespoke training solutions to its customers. By joining forces with Mintra, Moxie bolsters its product offering with Mintra’s digital training platform, Trainingportal, which provides a broad range of content and advanced workforce management tools designed to improve safety, compliance, and operational efficiency. Mintra strengthens its capabilities and extends its reach.
Martin Glenday, President of Moxie, expressed enthusiasm about the transaction, stating, “By integrating Mintra’s digital expertise with Moxie’s industry-specific training content, we can provide an even stronger portfolio of solutions to our customers. We’re excited about the new possibilities this brings for innovation and expansion.” Moxie Media will continue to operate independently upon becoming a part of Mintra, maintaining its team and dedication to content creation.
G.F. Gay Le Breton is managing director for Chaffe & Associates Inc., responsible for the corporate finance activities of the firm. Liam Norton is a corporate finance analyst with the firm. Investment banking services are provided by Chaffe Securities Inc., member FINRA/SIPC. For more information, visit http://chaffe-associates.com.