H&E Equipment Services signs definitive agreement to sell Komatsu Earthmoving distributorship
H&E Equipment Services Inc. has announced the signing of a definitive agreement to sell its Komatsu earthmoving distribution business to Houston, Texas-based Waukesha-Pearce Industries, LLC (“WPI”). The transaction includes rights to the distribution of earthmoving equipment in the state of Louisiana and counties located in southwestern Arkansas, along with a distribution facility in Kenner, Louisiana, and certain other equipment, parts, and supplies. Also, H&E will assign to WPI the outstanding lease on its distribution facility in Bossier City, Louisiana. H&E will retain ownership of its rental assets located at the remaining seven rental branches in Louisiana. The transaction is expected to close by December 31, 2022, subject to customary closing conditions.
Brad Barber, chief executive officer of H&E, stated, “Just over a year ago, we completed the divestitures of our crane business and Arkansas earthmoving distribution business, significantly reducing our exposure to distribution activities. With the sale of our Komatsu earthmoving distributorship in the state of Louisiana, we are effectively completing our transformation to a pure-play rental business. This final step will allow us to sharpen our focus on the higher margin rental business as we continue our evaluation of strategic-growth opportunities in the equipment rental industry.”