8th Feb 2016 08:55
LONDON (Alliance News) - Tool and equipment hire company Speedy Hire PLC said on Monday it had strengthened its position in the UK rail sector with the acquisition of OHP Ltd for GBP1.5 million along with the assumption of GBP1.7 million net debt.
Speedy Hire said a further contingent cash consideration of up to a further GBP0.8 million would be payable, dependent on the future performance of OHP.
Speedy Hire shares were up 7.5% at 39.50 pence on Monday morning.
Crewe-based OHP operates Rail Hire UK Ltd, which specialises in the hire of overhead line equipment to the rail sector, as well as tools and equipment hire business Crewe Plant Hire Ltd. Consolidated revenue for OHP, which employs 25 staff, stood at GBP2.6 million for the year ended November 30, with normalised earnings before interest, tax, depreciation and amortisation of approximately GBP800,000.
Speedy Hire said it expects OHP to report growing revenue in the current financial year, on the back of recent contracts secured by Rail Hire.
OHP Managing Director and Founder Martin Davies will remain with the business after the acquisition.
Speedy Hire said its current trading is in line with its expectations reported in November.
"I am delighted to announce this acquisition which will help expand our business in this specialist sector of a growing UK rail market and further enhance our market position," said Russell Down, chief executive of Speedy Hire.
By Hannah Boland; [email protected]; @Hannaheboland
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