United Rentals acquires competitor H&E in $4.8bn deal

BY Fraser Tennant

In a deal that expands its capacity in strategic US markets, American equipment rental company United Rentals is to acquire one of its major competitors, H&E Equipment Services, in a transaction valued at approximately $4.8bn.

Under the terms of the definitive agreement, which has been unanimously approved by the boards of directors of both companies, United Rentals will acquire H&E for $92 per share in cash.

As the largest equipment rental company in the world, United Rentals has an integrated network of 1571 rental locations in North America, 39 in Europe, 37 in Australia and 19 in New Zealand. In North America, the company operates in 49 states and every Canadian province, with approximately 27,550 employees serving construction and industrial customers, utilities, municipalities, homeowners and others.

The integration of H&E into United Rentals’ operations presents opportunities to improve efficiency, productivity and new business development with the adoption of United Rentals’ operational excellence, including its technology offerings.

“In H&E we are acquiring a well-run operation that’s primed to benefit from our technology, operations and broad value proposition,” said Matthew Flannery, chief executive of United Rentals. “Most importantly, we are gaining a great team that shares our intense focus on safety and customer service.

“This purchase supports our strategy to deploy capital to grow the core business and drive shareholder value,” he continued. “This acquisition allows us to better serve our customers with expanded capacity in key markets while also providing the opportunity to further drive revenue through our proven cross-selling strategy.”

Founded in 1961, H&E is one of the largest rental equipment companies in the US. Comprised of aerial work platforms, earthmoving, material handling and other general and specialty lines, H&E serves a diverse set of end markets in many high-growth geographies and has branches throughout the Pacic Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, Midwest and Mid-Atlantic regions.

The transaction is subject to customary closing conditions, including a minimum tender of at least a majority of then-outstanding H&E common shares and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

“I could not be more pleased with this win-win outcome for both organisations, our customers and our shareholders,” concluded John M. Engquist, executive chairman of H&E. “I am confident that we have found an excellent landing spot for them and I am excited for the new opportunities they will have as part of United Rentals.”

News: United Rentals boosts equipment capacity with $4.8 billion H&E deal

GSK to acquire IDRx for $1.15bn

BY Richard Summerfield

Drug manufacturer GSK has agreed to acquire US biopharmaceutical firm IDRx, which is developing a therapy for the treatment of gastrointestinal stromal tumours (GIST).

Under the terms of the deal, GSK, Britain’s second-biggest drugmaker behind AstraZeneca, will pay $1bn upfront, with potential for an additional $150m success-based regulatory approval milestone payment. The acquisition includes lead molecule, IDRX-42, a highly selective KIT TKI being developed as a first- and second-line therapy for the treatment of GIST. GIST are the most common subtype of soft tissue sarcoma, with up to 120,000 patients diagnosed globally every year.

GSK will also be responsible for success-based milestone payments as well as tiered royalties for IDRX-42 owed to Germany’s Merck KGaA.

The deal will add to GSK’s growing portfolio in gastrointestinal cancers and is a continuation of its M&A strategy: acquiring assets designed to treat validated targets with unmet need. The company agreed a $2bn acquisition of Bellus Health and a $1.9bn takeover of Sierra Oncology in 2023 and 2022 respectively.

Since she became GSK’s chief executive in 2017, Emma Walmsley has been making acquisitions to boost key areas, after slimming down the overall drugs portfolio. Sales of vaccines, one of GSK’s strengths, have been falling.

The deal comes just one month after GSK gained an exclusive option to obtain a licence to develop and commercialise Duality Biologics preclinical antibody-drug conjugate, DB-1324, which leverages DualityBio’s duality immune toxin antibody conjugate platform against a gastrointestinal cancer target.

IDRX-42 is currently being evaluated in a phase 1/1b trial among GIST patients who have received second-line or more treatment. Data from the study, dubbed StrateGIST 1, demonstrate a manageable safety profile and favourable durability, according to GSK. IDRX-42 has gained FDA fast-track designation for treating patients with GIST after disease progression on or intolerance to imatinib, plus an orphan drug tag for GIST.

“IDRX-42 complements our growing portfolio in gastrointestinal cancers,” said Luke Miels, chief commercial officer of GSK. “This acquisition is consistent with our approach of acquiring assets that address validated targets and where there is clear unmet medical need, despite existing approved products.”

“We are excited by the early data from IDRX-42 and its unique ability to target all clinically relevant KIT mutations present in GIST, a major gap in the current standard of care,” said Tony Wood, chief scientific officer of GSK. “We look forward to accelerating its development in 2025 to redefine treatment.”

“We are looking forward to working with GSK to advance IDRX-42 for patients with GIST given there have been no major advances to the standard of care for almost 20 years,” said Tim Clackson, chief executive of IDRx. “Combining our experience to date with GSK’s expertise in GI cancers, global clinical development capability, and strong commercial presence in oncology will help to accelerate the development of this novel medicine for patients.”

News: GSK to buy US biotech firm IDRx for up to $1.15 billion

WWT acquires Softchoice in C$1.8bn tech deal

BY Fraser Tennant

In a move that will enhance its artificial intelligence (AI), cloud and software business across North America, World Wide Technology (WWT) is to acquire fellow IT channel company Softchoice in an all-cash transaction valued at C$1.8bn.   

Under the terms of the agreement, WWT, through an affiliate, will acquire all the issued and outstanding common shares of Softchoice for a price of C$24.50 per share.

The transaction will be implemented by way of a statutory plan of arrangement under the Canada Business Corporations Act and is subject to, among other things, the approval of a special meeting of shareholders in March 2025.

A termination fee of C$49m would be payable by Softchoice in certain circumstances, including in the context of Softchoice entering into a definitive agreement with respect to a superior proposal.

“Softchoice has been a transformative player in the IT industry for over 35 years,” said Jim Kavanaugh, co-founder and chief executive of WWT. “Adding its complementary software, cloud, cyber security and AI capabilities to WWT’s portfolio will enable us to create even greater value for our clients striving to achieve their digital transformation goals.”

Founded in 1990, WWT is a global technology solutions provider leading the AI and digital revolution, combining the power of strategy, execution and partnership to accelerate digital transformational outcomes for large public and private organisations around the world.

“WWT’s scale and global reach, customer base of large organisations, and industry leading infrastructure solutions are a perfect complement to our software and cloud focused solutions, our Canadian presence and our strength in the North American mid-market,” said Andrew Caprara, president and chief executive of Softchoice. “WWT is the ideal partner for our customers and employees and I am excited about our future as a combined firm.”

The transaction is also subject to court approval and customary closing conditions, including receipt of key regulatory approvals. It is not subject to any financing condition. Assuming the timely receipt of all required approvals, the transaction is expected to close in late Q1 or early Q2 2025.

David Steward, founder and chairman of WWT, concluded: “This acquisition strengthens our access to commercial, small and medium business customers while expanding WWT’s position in the US, Canada and around the world.”

News: WWT to snap up Canada-based Softchoice for $1.25bn

US regional bankers in $1.1bn merger

BY Fraser Tennant

In another sign of increasing consolidation within the US banking industry, regional lenders Berkshire Hills Bancorp and Brookline Bancorp are to merge in an all-stock transaction valued at approximately $1.1bn.

Under the terms of the definitive agreement, Berkshire shareholders will own approximately 51 percent of the combined company, Brookline shareholders will own approximately 45 percent, and investors in new shares will own approximately 4 percent of the outstanding shares.

The merger will see the creation of a $24bn franchise that uniquely positions the combined company to benefit from significant economies of scale and capitalise on meaningful growth opportunities through business diversification and improved competitive positioning.

The combined bank will be divided into six regions. Each of those regions will be led by an experienced local leader who will be responsible for the overall business performance in their markets.

This model allows the combined company to achieve the efficiencies of operating one bank while maintaining a regional banking structure that enables local market leaders to make autonomous decisions with the support and balance sheet of a larger institution.

“This merger marks a transformational milestone in the history of two storied institutions with a strong commitment to serving their clients and communities,” said Nitin J. Mhatre, president and chief executive of Berkshire. “The combined organisation will be in an even stronger position to deliver exceptional client experience and create greater value for shareholders.”

The transaction has been unanimously approved by the boards of directors of both companies.

“This transaction presents an opportunity to bring together two historic franchises in the Northeast market,” said Paul A. Perrault, chairman and chief executive of Brookline. “By bringing together two complementary cultures and geographic footprints with shared values and client focus, we will be better positioned to serve our customers, employees, communities and shareholders."

The transaction is expected to close by the end of the second half of 2025, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals and approvals from Berkshire and Brookline shareholders.

David Brunelle, chairperson of Berkshire, concluded: “This highly compelling combination is a true merger of equals that will create a preeminent northeast financial institution.”

News: Regional lenders Berkshire Hills Bancorp, Brookline strike $1.1 bln merger deal

Nippon Life Insurance to acquire Resolution in $8.2bn deal

BY Richard Summerfield

With a view to expanding its market share in the US, Nippon Life Insurance has agreed to acquire from Blackstone the remaining shares it does not own in Resolution Life Group Holdings for around $8.2bn in an all-cash deal. The deal values Resolution Life at $10.6bn.

The transaction is subject to regulatory approvals and is anticipated to close in the second half of 2025. It will complete a partnership that began in 2019 when Nippon Life first invested in Resolution Life. Since then, Nippon Life has remained the company’s largest investor and supported the growth of Resolution Life into a company with over $85bn of reserves and over 4 million policies.

Upon closure of the deal, Resolution Life’s operations in the US, the UK, Bermuda and Singapore will become a subsidiary of Nippon Life. This new division is expected to complement Nippon Life’s existing Japanese life business and its international asset management and retail operations. Clive Cowdery will continue to lead as chairman and chief executive, with Resolution Life Group Holdings Ltd remaining the primary regulated entity.

“As a mutual company owned by our policyholders, Nippon Life has always had a culture which puts customers at the heart of everything we do,” said Hiroshi Shimizu, president of Nippon Life. “We believe the acquisition of Resolution Life and the formation of Acenda demonstrates our commitment to working with exceptional businesses and teams to deliver innovative products and services. We are aligned with Resolution Life and our investment management partner Blackstone in continuing to deliver on the trust policyholders have placed in us to protect them and their families when they need us.”

“For 22 years, Resolution Life and prior Resolution companies have raised our capital from institutional investors and the public markets,” said Sir Cowdery. “I am delighted that we are now going forward under the single ownership and capital support of Nippon Life, an institution I admire and respect. There is a strong foundation of shared values, clarity of vision and breadth of capabilities across our organisations. Combining Resolution Life’s strengths, the investment management expertise of our partners at Blackstone and a well-funded parent gives us the opportunity to accelerate our growth and serve the needs of policyholders into the decades ahead.”

“We are very pleased with this outcome for Resolution Life’s policyholders and investors,” said Gilles Dellaert, global head of Blackstone Credit and Insurance. “Clive Cowdery has built a tremendous insurance platform, and we believe that this expanded partnership with the world-class team at Nippon Life will help drive its accelerated global growth. We look forward to continuing to deliver the benefits of Blackstone’s leading private credit and asset origination capabilities to Resolution Life and its policyholders in this next chapter with Nippon Life.”

The deal will mark Nippon Life’s second major overseas investment this year, following its $3.8bn purchase of a 20 percent stake in US insurance firm Corebridge Financial in May. The company has also sought to diversify its domestic business, buying nursing care provider Nichii Holdings for around $1.4bn in November last year.

News: Nippon Life to buy Resolution in $8.2 billion deal as it pursues US growth