11:12 ET - H&E Equipment's fleet size and age is a good way for an acquirer to bring down its fleet costs. Steven Ramsey of Thompson Research Group tells WSJ that H&E has a sizable fleet spread across a large branch network, with a fleet age that is much younger than the industry and younger than that of United Rentals and Herc Holdings. "The capex needed to replace the fleet of H&E can be much lower in the next few years, resulting in tremendous free cash flow to the acquirer," Ramsey says. The free cash flow could then be used for debt repayment, allowing the acquirer to pay a higher price. (adriano.marchese@wsj.com)
(END) Dow Jones Newswires
February 18, 2025 11:12 ET (16:12 GMT)
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