As part of efforts to shift its business focus, Baton Rouge-based H&E Equipment Services Inc. announced last week it has entered into a definitive agreement to sell its crane business for $130 million in cash to a subsidiary of global crane manufacturer The Manitowoc Company.
H&E CEO Brad Barber says in a prepared statement that the sale is a strategic move for the company, which is working to derive more of its revenue from industrial equipment rentals rather than equipment distribution and services. In selling its crane distribution and services arm, H&E can “focus on geographic expansion and fleet investment” for its rental business.
The deal was unanimously approved by H&E’s board of directors and is expected to close during the fourth quarter of 2021, subject to customary closing conditions, and regulatory approval.
In the announcement, H&E says its equipment rental grew from 32% of the firm’s revenue to 51% from 2015 to 2020.