US rental company H&E Equipment Services has announced it is to acquire Contractors Equipment Center (CEC) for an approximate US$122.4 million (€102.57 million).
CEC is a non-residential construction-focused equipment rental company located in the greater Denver, Colorado area. It has a range of equipment in its fleet, including earthmoving, tools, material handling and more. The deal is expected to close in the fourth quarter of 2017, and is subject to customary closing conditions including Hart-Scott-Rodino Act clearance.
In August, H&E came close to acquiring Neff Corporation, before United Rentals made a late bid to claim the company.
John Engquist, H&E’s CEO, said, “From every perspective, we believe CEC meets the strict criteria we demand for every acquisition. CEC is a long-term proven operator that has delivered solid operational and financial results and possesses a highly-experienced management team and employee base, which also shares our culture for best-in-class commitment to customer service and safety.
“As of September 30, 2017, CEC generated revenues of approximately US$34 million (€28.49 million) for the last twelve months and its fleet size based on original equipment cost was US$84 million (€70.39 million). With the addition of CEC, we will double our branch count to six in Colorado, significantly expanding our presence in a high-growth construction market.”
Meanwhile, Greg Harrington, president of CEC, added, “This acquisition is a significant compliment to everyone at CEC and validates our hard work and success in the construction markets we serve in Colorado.
“By joining H&E, we become part of an industry-leading integrated equipment services company with the scale to better serve our existing customers and further expand our presence in the vibrant Denver and surrounding markets. We believe our employees will also benefit from broader further career advancement opportunities.”