BATON ROUGE, La. - H&E Equipment Services, Inc. (NASDAQ: HEES), a large rental equipment company, has entered into a definitive agreement to purchase Lewistown Rental along with three affiliated rental operations in Montana. The acquisition is part of H&E's expansion strategy and is slated for completion in the second quarter of 2024, subject to customary closing conditions.
Lewistown Rental and its affiliates, located in Havre, Glasgow, and Great Falls, have a combined equipment fleet valued at approximately $28.5 million. These businesses cater to diverse markets including non-residential, industrial, and agricultural sectors.
H&E's CEO Brad Barber commented on the growth potential in northern and central Montana, highlighting the increasing demand in various construction and industrial activities. He expects the acquisition to integrate well with H&E's existing operations in Billings and Belgrade, Montana.
Following the transaction's close, H&E will extend its equipment rental services to 145 locations across 30 states. The company boasts a young and versatile fleet, serving multiple high-growth geographies and end markets.
The information for this article is based on a press release statement from H&E Equipment Services, Inc.
InvestingPro Insights
As H&E Equipment Services (NASDAQ: HEES) gears up for the acquisition of Lewistown Rental, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro, the company's market capitalization stands robust at $2.3 billion, reflecting investor confidence in its business model and expansion strategies.
An interesting facet of H&E's financial profile is its P/E ratio, which at 13.46, signals that the stock is trading at a reasonable valuation relative to its near-term earnings growth. This is underlined by a PEG ratio of 0.5 for the last twelve months as of Q4 2023, suggesting that the company's earnings growth may not be fully reflected in its current share price.
InvestingPro Tips highlight that H&E has maintained dividend payments for 11 consecutive years, offering a yield of 1.68%, based on the latest data. This consistent return to shareholders demonstrates the company's financial stability and commitment to its investors. Furthermore, analysts predict the company will remain profitable this year, having been profitable over the last twelve months.
To gain deeper insights into H&E Equipment Services' financials and stock performance, investors can look to the additional 14 InvestingPro Tips available at InvestingPro. And for those interested in joining the InvestingPro community, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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