List Your Equipment  /  Dealer Login  /  Create Account

H&E Equipment to Acquire J.W. Burress

Tue May 22, 2007 - National Edition
Construction Equipment Guide

H&E Equipment Services Inc. has reached a definitive agreement to acquire J.W. Burress.

The acquisition is subject to the completion of Burress’ 2006 audit, obtaining certain third-party consents (including from equipment manufacturers and vendors), receipt of financing, closing of the acquisition no later than July 31, and other customary closing conditions.

Burress is a privately owned construction equipment distributor serving the mid-Atlantic markets out of 12 locations. It operates in Maryland, Virginia, North Carolina and South Carolina.

Among others, Burress represents the following manufacturers: Diamond Z, Doosan, Hitachi, Manitowoc, Grove and Terex. The company does not anticipate currently that Burress will continue to represent Hitachi.

The estimated purchase price without Hitachi will be approximately $108.7 million, subject to adjustments, plus estimated assumed indebtedness of approximately $.4 million and will be financed through the company’s existing senior secured credit facility. Should Burress continue to represent Hitachi, the Burress shareholders will have the opportunity to receive additional purchase price of approximately $12.9 million payable over three years. Burress had unaudited revenues of approximately $178.0 million for the year ended December 31, 2006. The sale, rental and service of Hitachi products accounted for approximately 28 percent of unaudited revenues. The transaction is expected to be accretive in 2007.

H&E believes that it will be able, through Burress, to expand and grow its relationship with other manufacturers with which Burress currently does business and other manufacturers with which the company has had discussions. Accordingly, the acquisition is not conditioned on continuing the Hitachi distributorship.

John Engquist, president and chief executive officer said, “Burress is one of the premier distributors of heavy construction equipment in the U.S. and has an outstanding reputation with the manufacturers they represent and the end users they serve. This acquisition will expand our footprint contiguously throughout the mid-Atlantic region and affords us significant growth opportunities. Our ideal acquisition target is a distributor with strong retail sales and product support capabilities and a rental component that we can improve and grow significantly. Burress certainly fits this profile.”

H&E Equipment is one of the largest integrated equipment services companies in the United States with 47 full-service facilities throughout the West Coast, Intermountain, Southwest, Gulf Coast and Southeast regions of the United States.

Today's top stories

Walsh/Herzog Joint Venture Begins $640M Double Track Northwest Indiana Project

Case Launches Minotaur DL550 Compact Dozer Loader

Winter Equipment Outlines Plans for Future

Volvo CE to Showcase Machine, Services Innovation in Immersive Experience at ConExpo-Con/AGG 2023

Rehab Work Happening at Key Sites Within Pa.'s Gettysburg National Battlefield

SCA Announces Slag Cement University

Blanchard Machinery CEO, President Joe Blanchard Passes at Age 60

ATA Announces Its 2022 Mid America Region Winners

ceg-logo ceg-logo ceg-logo ceg-logo ceg-logo
39.04690 \\ -77.49030 \\ Ashburn \\ VA