Herc Holdings (HRI) Gains Scale in Equipment Rentals After H&E Acquisition

Herc Holdings Inc. (NYSE:HRI) is one of the 10 most undervalued industrial stocks to buy according to analysts. On June 2, 2025, Herc completed its acquisition of H&E Equipment Services, a transaction that significantly strengthens its position in the equipment rental industry.

Initially proposed in February, the deal offered H&E shareholders $78.75 in cash and 0.1287 shares of Herc stock per H&E share, valuing the offer at $104.89, and representing a 14% premium over a competing bid from United Rentals. H&E’s board ultimately backed Herc’s proposal, and following the completion, its shareholders now hold roughly 14% of the combined company.

A construction crew working in the field with earthmoving equipment illuminated by a setting sun.

The acquisition adds scale and reach to Herc’s operations, positioning it in 11 of the top 20 U.S. rental markets. It also broadens its fleet, strengthens its specialty and general equipment offerings, and brings in a skilled workforce aligned with Herc’s customer-focused culture. CEO Larry Silber noted that the deal sets the stage for accelerated growth and stronger long-term value creation.

Reflecting confidence in Herc’s outlook, Barclays analyst Adam Seiden reiterated a Buy rating on the stock on June 10, maintaining a $160 price target, among the highest on the street.

Herc Holdings Inc., which operates through its Herc Rentals Inc. subsidiary, is a full-line rental supplier with a fleet that includes aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment.

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