07:00 AM EST, 01/14/2025 (MT Newswires) -- United Rentals ( URI ) and H&E Equipment Services ( HEES ) said Tuesday that they entered into a definitive agreement under which United Rentals ( URI ) will acquire H&E at $92 per share in cash for a total enterprise value of about $4.8 billion, including net debt of around $1.4 billion.

United Rentals ( URI ) plans to launch a tender offer by Jan. 28 to acquire all the outstanding shares of H&E and obtain all remaining shares not tendered in the offer through a second-step merger.

The transaction is expected to close in Q1. The boards of directors of both companies unanimously approved the transaction.

The company said the acquisition is expected to be accretive to United Rentals' ( URI ) adjusted earnings per share in its first year after closing.

The agreement includes a 35-day "go-shop" period through Feb. 17, during which H&E can terminate the merger to accept a superior proposal.

H&E shares surged 105% in premarket trading while United Rentals ( URI ) advanced 3.5%.