Friday Roundup: Herc hijacks United/H&E deal | Himoinsa’s Bauma lineup | Coates cuts fleet costs

Scissors at one of Coates’ yards.

That is because earlier this week we broke the news that Herc Rentals had signed a deal to acquire H&E in a transaction valued at $5.3 billion, including $1.5 billion in debt.

The deal will combine Herc’s $3.5 billion annual revenue business with H&E’s $1.5 billion operation, bolstering Herc’s position as number three in the North American market behind United Rentals and Sunbelt Rentals.

Larry Silber, Herc’s president and CEO, said of the deal; “Herc’s cash and stock merger consideration provides H&E shareholders with an immediate and significant premium. In addition, by combining our companies, we would unlock substantial upside opportunity for both Herc and H&E shareholders.

“As our track record shows, we are a disciplined and experienced acquiror, and this transaction meets all of our value creation M&A criteria.”

While United had four days to submit a revised proposal, it said that it would not exercise its right to, citing “financial discipline.”

Matthew Flannery, chief executive officer of United Rentals, said, “One of our key responsibilities as a management team is to be good stewards of our investors’ capital and our decision not to increase our offer for H&E reflects our commitment to financial discipline.”

That announcement perhaps overshadowed Herc’s results, which were published earlier in the week. In that, the company reported 9% growth in revenues in 2024 despite what it described as a “more challenging market than anticipated”. Rental revenues of $3.199 billion rose 11% year-over-year, with total revenues up 9% at $3.57 billion.

Looking ahead, the company is forecasting more moderate rental revenue growth of between 4% and 6% this year, and its gross spending on fleet will be between $700 million and $900 million, down from $1048 million in 2024.

Click here for five things that we learned from the results. 

Registration opens for ERA Convention 

Focusing on Europe, registration opened for the 2025 ERA Convention, which will take place on 3-5 of June in Dublin, Ireland.

This year’s theme will focus on “Navigating transitions in rental” and will look at a variety of topics, including the challenges and opportunities of the total cost of ownership, the digital transition and AI in the rental industry, and sustainability.

The event will see a number of plenary sessions and workshops take place, covering topics such as the energy transition, Total Cost of Ownership and digitalisation of the industry. 

Speakers include Martin Seban, director of KPMG, Pierre-Yves Rallet, Committee Chairman, ERA, Matt Ross, Committee Chairman, ERA and Douglas McLuckie, Committee Chairman, ERA. 

A guest speaker will be confirmed in the lead up to the convention, the ERA said.

Taking place during the convention is the European Rental Awards, which is jointly organised by International Rental News and the European Rental Association. 

Deadline for entries is Friday 28 February. Any companies that wish to enter can visit the website or download the attached form. All entries should be sent to Lewis Tyler, IRN at: [email protected].

Major deals

Staying in Europe, UK trade event the Executive Hire Show returned in Coventry, and saw several on-stand deals completed.

Among those deals was a £250,000 order placed by UK-based tool renter Total Rental Solutions for a variety of units from generator supplier Shindaiwa.

The deal, which was signed on the first day of the event, will see Total Rental Solutions add 10 300A Eco 300 welder generators and 10 Eco400 generators to its fleet.

Unveiled at the show for the first time, the Eco400 is described as a cutting-edge welding generator that features the latest Stage V D902 Kubota engine which is said to provide reliable and fuel-efficient operation while meeting stringent emissions regulations.

The Eco400 also features a 12kVA three-phase generator, capable of powering industrial equipment such as compressors, plasma cutters, and inverter welders. It also includes a3.3 kVA 110V CTE auxiliary power supply for additional versatility.

The Shindaiwa Eco300, which is described as a versatile diesel welder generator designed to deliver 50 to 300 amps of DC welding current, is powered by a water-cooled Kubota engine.

It includes a 3kVA 110V output, capable of running larger power tools such as 9-inch grinders, alongside an 8 kVA three-phase supply for additional power requirements.

IRN was told that they will initially be sent to a petrochemical refinery.

Bauma focus

In the week that Bauma Media Dialog took place in Munich, Spanish generator and lighting tower manufacturer Himoinsa said it will show its full product range in April.

Among the highlights, the company said it will introduce new electronic control systems designed for remote monitoring and equipment management.

From its generator range, Himoinsa will show its Stage V-compliant generators, designed for reduced emissions and improved efficiency. These units, ranging from 17kVA to 550kVA, incorporate gas after-treatment systems to lower nitrogen oxide (NOx) and particulate emissions. They are also certified to operate with hydrotreated vegetable oil (HVO) fuel.

The company will also present the HGY series of large-scale generator sets, with power outputs from 1250kVA to 4000kVA. Powered by Yanmar engines, the units are designed for continuous operation in sectors such as construction, mining, and events. The HGY-2600 D5 model will also be on display.

Himoinsa will also introduce the new EHR 90/130 battery power generator, an energy storage and distribution system that increases storage capacity to 130kWh. 

Visitors will also see the full range of EHR models, including the 45/60 and 45/90, which can be used for applications such as powering construction equipment or recharging electric machinery.

Its range of diesel and hybrid lighting towers, including the HBOX+, HBOX+ Hybrid, and HCOMPACT+ models, will also be on display.

Coates makes fleet efficiency gains

On the topic of fleet, Australia-based rental company Coates said the ongoing roll-out of its hub and spoke depot structure had helped it reduce repair and maintenance costs on its equipment fleet.

It reported that repair and maintenance costs as a proportion of revenues had fallen to 17.3% for the six months to 31 December. The figure was nearer to 21% in its 2020 financial year and has been falling consistently since then.

At the same time, the company announced its half year results, with revenues down 4% to A$546 million.

Ryan Stokes, CEO of SHG (formerly Seven Group Holdings), the owner of Coates, said the “modest decline” reflected “resilient customer activity in the East, West and North [of Australia], and lower activity in Victoria.”

The EBITDA margin was 46.4%. SGH said cost and pricing discipline – including a 7% reduction in personnel costs - drove growth in EBITDA and EBIT margins.

“Market conditions remain mixed for Coates”, said Stokes, “with softer trading conditions in Victoria ongoing due to major project deferrals, partially offset by resilient activity in the East.

Rental software launch

Rounding up news from this week, MCS Rental Software introduced a new Split Tasks feature that it said is designed to enhance productivity and flexibility in plant operations.

The company said the new functionality enables operators to divide tasks into smaller, more manageable parts, simplifying planning and resource allocation over extended periods.

With the Split Tasks feature, planners can break down assignments based on duration and available manpower. Nick Thomson, sales director at MCS Rental Software, said, “The launch of our Split Tasks feature marks a significant step forward in our ongoing commitment to support plant operators with tools that empower more effective task management and resource allocation.

“The entire rental process, from initial planning on a desktop to seamless completion on a mobile device, is successfully managed using MCS Rental Software.”

MCS said the Split Tasks feature responds to the increasing demand for adaptability in task management, particularly in fast-moving plant environments where schedules frequently change.

By introducing greater flexibility in task allocation and planning, MCS said it aims to help operators maintain productivity without compromising on quality or efficiency.