15th May 2006 07:01
Speedy Hire PLC15 May 2006 15 May 2006 Speedy Hire Plc ("Speedy Hire") Acquisition of LCH Generators Limited, the UK's leading independent hirer oftemporary power systems Speedy Hire is pleased to announce the acquisition of the entire issued sharecapital of LCH Generators Limited ("LCH"), a UK based generator hire companyoperating from 6 depots, from John Pirrie, James Pirrie and Glynis Pirrie. Whenadded to Speedy's existing power generation business, the combined operationwill have over 4,000 generators available for hire to service construction andindustrial customers throughout the UK. Total consideration is £59.0 million, comprising £54.5million in cash and £4.5million satisfied by the issue of 512,626 new ordinary shares (the "Consideration Shares"). Included in the transaction price is £13.5m of debtthat Speedy Hire will assume on completion. To finance the transaction, Speedy Hire negotiated increased bank facilities of£210 million up from £150 million from its existing banking syndicate. LCH has realised 20% CAGR in revenue over the past 5 years driven by a highlevel investment in quality equipment, customer and product focus and expansionof its depot network. It has available for hire 2,400 generators and servicesprincipally for construction and industrial customers. LCH employs 196 staff atfive directly operated sites in Glasgow, Wigan, Coventry, London and Portsmouth,plus an agency agreement based in Aberdeen that provides services to the offshore market. For the year ended 30 September 2005, the most recent audited period for LCH,reported turnover was £21.1 million (2004: £14.9 million) and pre-tax profit was£1.9 million (2004: £1.6 million), after charging non-recurring remuneration andinterest charges in the year of £2.1million. As at 30 September 2005, LCH'sgross assets were £30.6million. Post year end, the significant growthexperienced in previous years has continued. The acquisition of LCH is in line with Speedy Hire's stated strategic objectiveof expanding all areas of its operations to become number 1 or 2 in each segmentof the hire market in which it operates. The acquisition will accelerate thedevelopment and formation of a specialist power generation business through theintegration of LCH and Speedy's existing generator fleet within Speedy Power. Application has been made for the Consideration Shares to be admitted to theOfficial List of the UK Listing Authority and to be traded on the London StockExchange's market for listed securities. The Consideration Shares, which willrank pari passu in all respects with the existing shares in issue, have beenallotted to the vendors in consideration of the acquisition of LCH. Admissionis expected to become effective on 18 May 2006. Steve Corcoran, Chief Executive said: "LCH has established itself as a leading provider of temporary power for hire inthe UK. Its rapid growth has been driven by a combination of customer focus,commitment to service and investment in a quality fleet. The addition of LCH to Speedy's existing modern fleet will create a wider rangeof generators for hire nationally, supported by a highly motivated managementteam. Customer service is at the forefront of the cultures of both LCH and Speedy Hireand this will continue. I am pleased to welcome all employees of LCH and I lookforward to continued growth within the generator product category." -ends- www.speedyhire.plc.uk Speedy Hire Plc Hudson SandlerSteve Corcoran, Chief Executive Nick Lyon / James Benjamin / Kate HoughNeil O'Brien, Group Finance DirectorTel: 01942 720 000 Tel: 020 7796 4133 Note to editors: Speedy Hire is the number one provider of equipment hire services in the UK,operating from over 300 depots throughout the country. The Group is focusedprimarily on tool hire, with complementary businesses specialising in portableaccommodation, lifting equipment, surveying and measurement instruments andcompressed air and power generating equipment. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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