H&E Equipment Services Inc. in Baton Rouge is acquiring a non-residential construction equipment rental company in the Denver area for $122.4 million.
The deal for Contractors Equipment Center is expected to be completed late in the fourth quarter.
"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," said John Engquist, H&E’s chief executive officer.
H&E has 80 full-service facilities throughout the West Coast, Intermountain, Southwest, Gulf Coast, Mid-Atlantic and Southeast regions. The company is focused on heavy construction and industrial equipment rentals, sales and provides parts and services support for four core categories of specialized equipment: hi-lift or aerial platform equipment; cranes; earthmoving equipment; and industrial lift trucks.
Engquist said CEC's end-user market and fleet mix complement H&E's existing business. As of Sept. 30, CEC generated about $34.0 million in revenue over the previous 12 months and its fleet had an original equipment cost of $84.0 million.
"We are actively evaluating acquisitions similar to CEC that align with our growth strategy and expand our operations,” Engquist said.