- October 15, 2021
- Comments: 0
- Posted by: admin
Transaction supports H&E’s transformation to a pure-play equipment rental company
Will promote H&E’s strategic focus on geographic expansion and fleet investment
H&E to host conference call to discuss transaction
BATON ROUGE, La., July 20, 2021–(BUSINESS WIRE)–H&E Equipment Services, Inc. (NASDAQ: HEES) ("H&E") today announced that it has entered into a definitive agreement to sell its crane business to a wholly-owned subsidiary of The Manitowoc Company, Inc. (NYSE: MTW), a leading global manufacturer of cranes and lifting solutions, for $130 million in cash. The transaction is expected to close during the fourth quarter of 2021, subject to customary closing conditions, including regulatory approval under the Hart-Scott-Rodino Act.
"This transaction marks an important step in H&E Equipment’s transition to a pure-play equipment rental company," said Brad Barber, H&E’s Chief Executive Officer. "We expect our continued migration to higher margin rentals will promote our strategic focus on geographic expansion and fleet investment, drive outsized revenue and profitability growth, and enable us to take full advantage of opportunities created by favorable industry and macro trends."
"H&E has a long history and excellent reputation for serving the lifting industry, and we look forward to welcoming the H&E crane team to Manitowoc," commented Aaron H. Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc. As a result of the transaction, H&E will fully exit the crane distribution business.
This divestiture, which was unanimously approved by H&E’s Board of Directors, is expected to increase, and further stabilize the Company’s EBITDA margin as it intensifies its focus on the higher margin equipment rental business.
H&E’s equipment rental business has shown consistent growth, with a compound annual growth rate of 11 percent in the five years leading up to 2020. This rapid growth has seen the rental portion of H&E’s business expand from 32 percent of revenues 10 years ago to 51 percent in 2020. The overall demand for equipment rentals has continued to expand and has proven to be more stable and resilient to market disruptions than the distribution business.
Possible uses of proceeds from the transaction include, but are not necessarily limited to, further expansion of new facilities, investment in the rental fleet, and the delivery of a differentiated customer experience through enhanced technology capabilities. In addition, the proceeds will fortify the Company’s strong cash position while supporting strategic growth initiatives and ongoing dividends.
H&E Equipment Services will host a conference call and live webcast on July 20, 2021, commencing at 11:00am (Eastern Time), to discuss the announced transaction. Interested parties can participate in the call by dialing 1-844-887-9400, or by visiting the "Investor Relations" section of the Company’s website at www.he-equipment.com. A replay of the call will become available after 1:00 p.m. (Eastern Time) on July 20, 2021 and can be accessed by dialing 1-877-344-7529 and entering the conference code 10158870. The call will remain active until August 3, 2021. A replay of the webcast will remain active on the Company’s website for 30 days.
About H&E Equipment Services
The Company is one of the largest integrated equipment services companies in the United States with 105 full-service facilities throughout the West Coast, Intermountain, Southwest, Gulf Coast, Mid-Atlantic and Southeast regions of the United States. The Company is focused on heavy construction and industrial equipment and rents, sells, and provides parts and service support for four core categories of specialized equipment: (1) hi-lift or aerial platform equipment; (2) cranes; (3) earthmoving equipment; and (4) material handling equipment. By providing equipment rental, sales, and on-site parts, repair, and maintenance functions under one roof, the Company is a one-stop provider for its customers' varied equipment needs. This full service approach provides the Company with multiple points of customer contact, enabling it to maintain a high quality rental fleet, as well as an effective distribution channel for fleet disposal and provides cross-selling opportunities among its new and used equipment sales, rentals, parts sales, and service operations.
About The Manitowoc Company, Inc.
The Manitowoc Company, Inc. was founded in 1902 and has over a 118-year tradition of providing high-quality, customer-focused products and support services to its markets. Manitowoc is one of the world’s leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, and supports comprehensive product lines of mobile hydraulic cranes, tower cranes, lattice-boom crawler cranes and boom trucks under the Grove, Manitowoc, National Crane, Potain and Shuttlelift brand names.
Certain statements contained herein are "forward-looking statements" within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs and expectations are forward-looking statements. Statements containing the words "may", "could", "would", "should", "believe", "expect", "anticipate", "plan", "estimate", "target", "project", "intend" and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, failure to obtain, delays in obtaining, or adverse conditions contained in, any required regulatory or other approvals, including antitrust approvals; failure to consummate or a delay in consummating the transaction for other reasons, and other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, we are under no obligation to publicly update or revise any forward-looking statements after the date hereof.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210720005214/en/
Leslie S. Magee
Chief Financial Officer
Jeffrey L. Chastain
Vice President of Investor Relations
Shares of Ocugen (NASDAQ: OCGN) were skyrocketing 41.4% this week as of the market close on Thursday, according to data from S&P Global Market Intelligence. Ocugen has been a meme stock popular with online investors for months. Ocugen received two pieces of good news this week.
Shares of Corsair Gaming, Inc. (CRSR) declined 7% in Thursday’s extended trading session after the company revealed that it expects to report Q3 net revenues of $391 million, much lower than the Street’s expectations of $485.2 million. Corsair develops and manufactures high-performance gear and technology for gamers, content creators, and PC enthusiasts. (See Corsair stock charts on TipRanks) The company said that the key reasons behind the poor revenue guidance are global logistics and supply c
Truist Financial Corporation (NYSE: TFC) today reported earnings for the third quarter of 2021.
One analyst's price target for the electric-car maker's stock implies more than 60% downside. Is it time to sell?
(Bloomberg) — Virgin Galactic Holdings Inc. is pushing the start of commercial flights further into next year after rescheduling a test flight, disappointing investors with the unexpected delay to its space tourism business plans.Most Read from BloombergOut-of-Practice Airline Pilots Are Making Errors Back in the AirThe World’s Rich and Powerful Are Stashing $500 Billion in This Tax HavenWhat Comes After GE’s 129 Years of Greenhouse GasWhat the Front Line of the U.S. Abortion Fight in Kentucky
Plug Power announced a string of new partnerships and a major acquisition at its annual symposium Thursday, riding on the momentum of a global push to accelerate the adoption of clean energy.
Virgin Galactic delayed the start of start commercial flights until Q4 2022 as it starts its lengthy enhancement program. Is SPCE stock a buy?
When you put 20% down on the purchase of a home, you don’t have to borrow as much money as someone whose down payment is only 5% or 10%. And as a result, your monthly mortgage payment may be considerably … Continue reading → The post This One Chart Shows Why Putting 20% Down on a Mortgage May Be a Mistake appeared first on SmartAsset Blog.
Meme stocks closed mixed on Thursday, but retail investors appear to be finally jumping in with the gusto on so-called direct registration.
In this article, we discuss the 11 best value stocks to buy according to Warren Buffett. You can skip our detailed analysis of Buffett’s investment strategies and go directly to read the 5 Best Value Stocks To Buy According To Warren Buffett. Warren Buffett does not need any introduction in the investment world. He is […]
Jason Kupferberg, Bank of America Analyst, discusses why Affirm is considered a 'clear bright spot' in the buy now, pay later space.
Brokerages' race to the bottom in trading fees has been a breakthrough in helping to make investing less cumbersome to newcomers. While high commissions used to be a costly obstacle for new investors and discouraged some from investing altogether, that's now less of an issue. In fact, a recent study by discount broker Charles Schwab found that 15% of current U.S. investors bought their first shares just last year.
These well-known and widely held companies should deliver jaw-dropping revenue growth over the next five years.
The cryptocurrency market has been quite vibrant this week, said one analyst.
Real estate broker Matt Mathias was pulling up his ski pants in Telluride, Colorado, when he said he got the call that would further change Austin's trajectory. A Tesla executive was on the phone: Elon Musk, searching for a location for a new electric vehicle factory, didn't like the sites he had visited and was getting ready to leave town.
Paying Social Security contributions continues even past reaching full retirement age, but can increase future Social Security retirement benefits.
The market rally had its best day in months, with Google and Microsoft among new stocks flashing buy signals.
Summer has wound down, the Q3 earnings reports will be coming in over the next few weeks, and every investor can see that the market is hitting a rolling boil. For investors in search of a bright spot, Canaccord Chief Market Strategist Tony Dwyer believes the increasing volatility in the market could lead to attractive entry points. "Our core fundamental thesis remains positive, our tactical indicators coupled with history suggest any further weakness should prove temporary, and we expect the ye
Personal-finance pundits love to debate safe withdrawal rates—the amount a retiree can withdraw each year from a portfolio without depleting it too quickly. On the income side, do you envision a traditional retirement—that is, stopping work entirely—or would you like to taper down to part-time, perhaps taking on a new job or starting a small business? It seemed like an odd choice for a high-net-worth retiree.
These stocks have dividend yields as high as 5.91%, and the companies never cut dividends after oil prices began their long decline in 2014.