H&E Equipment Services, Inc. just announced it has completed the sale of the Company’s crane business to a wholly-owned subsidiary of The Manitowoc Company, Inc. Proceeds from the sale are an estimated $130 million in cash, pending the finalization of net working capital and other transaction adjustments. The proceeds are expected to be used for further facilities expansion, investment in the rental fleet, and other general corporate purposes.
Brad Barber, Chief Executive Officer of H&E Equipment Services, Inc., noted, “With the closing of the transaction, H&E has fully exited all crane distribution and service activities while positioning the Company for continued expansion in the equipment rental business. We believe our transition to a pure rental business strategy should result in improved revenues and margins through the industry cycle.”
The Company also reported that the previously announced agreement to sell two earthmoving distribution branches in Arkansas has closed. H&E will remain a distributor of earthmoving equipment in the state of Louisiana.
Following the closing of the two transactions, H&E’s equipment rental operations extend across 101 branch locations in 24 states.
