19th Jul 2018 13:30
LONDON (Alliance News) - HSS Hire Group PLC said on Thursday it has entered a conditional agreement for the sale of access lifts rental unit UK Platforms Ltd for a total enterprise value of GBP60.5 million.
The tool and equipment supplier has entered into a conditional agreement for the sale with Nationwide Platforms Ltd, a subsidiary of industrial equipment supplier Loxam Group.
As part of the transaction HSS has entered a long-term strategic commercial agreement with Nationwide to provide powered access equipment to complement HSS's existing fleet.
The sale is in line with HSS's strategic agenda of delevering the group by reducing its overall debt and allowing greater focus on the core tool hire business. Completion of the sale is conditional on shareholder approval as it constitutes a class 1 transaction under listing rules.
In addition, HSS Hire said that trading for the group in the first half of 2018 is in line with management expectations, with underlying revenue growth grater than 7.0%.
"Since our Strategic Review last December we have made substantial progress against our strategic priorities by reducing costs, delivering major operational change, improving trading and re-financing. Today's announcement is another step forward. It will accelerate progress against our strategic priorities, enabling further deleveraging through debt reduction and allow greater focus on our core Tool Hire business," said Chief Executive Steve Ashmore.
"The UK Platforms business has made an excellent contribution to the Group over recent years, but considering our priorities and focus on tool hire we feel it will reach its full potential under new ownership," Ashmore added.
Shares in HSS Hire were up 1.3% at 35.10 pence on Thursday.
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