H&E Equipment Services is set to sell its Komatsu earthmoving distribution business to Houston-based Waukesha-Pearce Industries (WPI), furthering H&E’s move to focus on its rental business.
The value of the deal, which is expected to close by the end of the year, has not been disclosed.
Baton Rouge, La.-based H&E Equipment Services has distribution rights for earthmoving equipment in Louisiana and southwestern Arkansas, along with a distribution facility in Kenner, La. The company will retain a presence in Louisiana through its rental branches, according to an H&E release.
The sale is part of a continuing effort by H&E to streamline its operations and focus on its equipment rental business, Chief Executive Brad Barber said in a statement. H&E in Q3 2021 divested from its crane division in a $130 million sale to Milwaukee-based Manitowoc Company.
“This final step will allow us to sharpen our focus on the higher margin rental business as we continue our evaluation of strategic-growth opportunities in the equipment rental industry,” Barber said.
In fact, equipment rental was the shining star of H&E’s Q3 earnings report. Revenue from its rental operations clocked in $253.6 million, an increase of 28.6% year over year, accounting for 78.2% of its total quarterly revenue.