Neff Terminates Acquisition by H&E After Receiving Better Offer

Neff Corporation notified H&E Equipment Services on August 13 that it received a superior acquisition proposal and that Neff intends to terminate its previously announced acquisition by H&E.

H&E does not intend to submit a revised proposal for the acquisition of Neff, which will permit the termination.

In connection with that determination, John Engquist, CEO of H&E, said, “We will remain disciplined on the price that we pay for assets. We intend instead to pursue an accelerated strategy of greenfield expansion and opportunistic roll-up acquisitions which we believe will be a higher and better use for our resources.”

As previously announced, on July 14, 2017, H&E and Neff entered into a merger agreement pursuant to which H&E agreed to acquire Neff for $21.07 per share, subject to certain downward adjustments. On August 13, 2017, Neff notified H&E that it had received a superior acquisition proposal from a strategic bidder to acquire Neff for $25.00 per share. Prior to terminating the merger agreement, Neff was required to negotiate in good faith with H&E for five business days. H&E has waived this period.

Under the merger agreement, Neff is required to pay a termination fee of approximately $13.2 million to H&E if Neff terminates the merger agreement.

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