Wed July 21, 2021
The Manitowoc Company Inc., a global manufacturer of cranes and lifting solutions, announced that it has entered into a definitive agreement to acquire the crane business of H&E Equipment Services Inc., one of the largest rental equipment companies in the United States.
The wholly owned Manitowoc subsidiary will be called "MGX Equipment Services LLC."
"We believe this acquisition will allow us to better understand and respond to the market needs, and to more effectively deliver solutions that positively support the customers' business," said Ion Warner, VP, Marketing and Investor Relations, Manitowoc.
"For Manitowoc, there is also the benefit of a recurring revenue stream in aftermarket services, new & used equipment sales, in addition to rentals [bare rental]. With this new business, we plan to continue improving these services by investing in best-in-class sales and technical support in the assigned territories."
Under the terms of the agreement, Manitowoc is expected to pay approximately $130 million funded by a combination of 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.
The acquisition of 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 end market customers. H&E's crane business operates with 11 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."
Manitowoc will acquire 11 full-service crane facilities and operations in nine states and will continue to provide product support in the customers' local markets. These locations are:
- Norfolk, Va.
- Baltimore, Md.
- Winston Salem, N.C.
- Birmingham, Ala.
- Baton Rouge, La.
- Belle Chasse, La.
- Houston, Texas
- Dallas, Texas
- Nashville, Tenn.
- Phoenix, Ariz.
- Salt Lake City, Utah
While H&E's crane business is transitioning with the acquisition, the day-to-day relationships will not change. The new distribution organization will be led by Cary Burr, H&E's current SVP of Cranes. Burr will report directly to Les Middleton, EVP Mobile Cranes.
"Initially acquisition will help make Manitowoc a stronger and more agile company, even during cyclical downturns, which is a positive for all of us," Warner said.
For more information, visit www. manitowoc.com