Manitowoc to Buy H&E Crane Business
July 20, 2021 - The Manitowoc Company Inc. has has entered into a definitive agreement to acquire the crane business of H&E Equipment Services Inc., one of the largest equipment rental companies in the U.S.
Under the agreement, Manitowoc is expected to pay about $130 million funded through cash on hand and existing debt availability.
The transaction is expected to close in the fourth quarter of 2021 and is subject to customary closing conditions and regulatory approvals.
Acquiring H&E’s crane business will expand Manitowoc’s ability to provide rentals, new sales, used sales, aftermarket parts, and service to a variety of customers. H&E’s crane business operates with eleven full-service branch locations.
“Over the past few quarters, we have communicated that our intent is to grow through four strategic priorities, one of which is acquisitions focused on aftermarket. The purchase of H&E’s crane business is the next step in our journey to grow the less cyclical part of our business. 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,” said Aaron H. Ravenscroft, president and Chief Executive Officer of The Manitowoc Company, Inc.
Brad Barber, Chief Executive Officer of H&E Equipment Services, Inc., said, “H&E has become one of the largest rental equipment companies in the U.S. by maintaining a commitment to growth. The sale of our crane business to Manitowoc represents a transformative event in H&E’s continued efforts to increase its focus in the equipment rental business, while positioning us for future growth opportunities. We believe Manitowoc will provide further career opportunities for our crane employees and will also continue to offer first-class service to existing crane customers.”
The Manitowoc Company hosted a conference call to discuss the transaction with security analysts and institutional investors on Tuesday, July 20 (today). A live audio webcast of the call, along with the related presentation can be accessed in the Investor Relations section of Manitowoc’s website at www.manitowoc.com. A replay of the conference call will also be available at the same location on the website.