Benzinga | Jul 20, 2021 01:06PM EDT

H&E Equipment Divests Crane Business To Manitowoc For $130M

* H&E Equipment Services, Inc. (NASDAQ:HEES) agreed to sell its crane business to a wholly-owned subsidiary of Manitowoc Company Inc (NYSE:MTW) for $130 million in cash.

* H&E's crane business operates with eleven full-service branch locations. This acquisition expands Manitowoc's ability to provide rentals, new sales, used sales, aftermarket parts, and service to various end-market customers.

* H&E Equipment expects this divestiture to increase and further stabilize its EBITDA margin as the company intensifies its focus on the equipment rental business.

* Manitowoc plans to fund the acquisition by a combination of cash on hand and existing debt availability.

* Manitowoc had cash and cash equivalents of $158.5 million as of March 31, 2021.

* The companies expect the transaction to close in Q4 2021.

* Price action: HEES shares are trading higher by 6.53% at $31.08, and MTW is trading higher by 8.18% at $22.22 on the last check Tuesday.