H&E Equipment Divests Komatsu Earthmoving Distribution Business - H&E Equipment Servs (NASDAQ:HEES)

H&E Equipment Services Inc HEES has agreed to sell its Komatsu earthmoving distribution business to Houston, Texas-based Waukesha-Pearce Industries LLC (WPI). The financial details were not disclosed.
The transaction includes rights to the distribution of earthmoving equipment in the state of Louisiana and counties in southwestern Arkansas, along with a distribution facility in Kenner, Louisiana, and certain other equipment, parts and supplies.
In addition, H&E will assign to WPI the outstanding lease on its distribution facility in Bossier City, Louisiana.
H&E will retain ownership of its rental assets located at the remaining seven rental branches in Louisiana.
The company expects the transaction to close by December 31, 2022.
"With the sale of our Komatsu earthmoving distributorship in the state of Louisiana, we are effectively completing our transformation to a pure-play rental business,” said CEO Brad Barber.
Over a year ago, the company completed the divestitures of its crane business and Arkansas earthmoving distribution business, significantly reducing exposure to distribution activities.
The company held $220.5 million in cash and equivalents as of September 30, 2022.
Price Action: HEES shares are trading higher by 1.82% at $43.60 on the last check Monday.
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