9th Feb 2005 07:00
Speedy Hire PLC09 February 2005 9 February 2005 Speedy Hire Plc ("Speedy Hire" or the "Group") Acquisition of Tool Hire Business & Disposal of Toilet Hire UK Speedy Hire Plc, the UK number one tool and equipment hirer today announced thatit has acquired the business and certain assets of D.A.D. Hire Services Limited("D.A.D.") for a cash consideration of £0.3m. D.A.D. is an established and well-respected tool hire business operating from asingle depot in Northwich, Cheshire, and will be integrated into the existingSpeedy Hire network in the North West of England. The reported turnover of D.A.Dfor the year ended 31 March 2003 was £0.3m. Speedy Hire also announces that it has disposed of in full the trade and assetsof Toilet Hire UK to a management buy-in team backed by the Bank of Scotland.Total consideration is £1.1m, £0.6m of the consideration is deferredconsideration, payable in equal instalments over three years. Toilet Hire UK is a small division of Speedy Space and its disposal representsthe exit of Speedy Hire from stand alone toilet hire, a small market withlimited growth opportunities. Speedy Hire did not consider the product providedthe ability to leverage its national network or brand in a highly fragmentedmarket. Toilet Hire UK was formed in 2002 following the acquisition of theJewson stand alone hire depots. Toilet Hire UK's 2004 turnover was £5.2m and its net assets at March 2004 were£2.6m but it only made a £0.1m contribution to group operating profits. ToiletHire UK generated below average operating margin and return on capital. Speedy's preliminary results for the year ended 31 March 2005, to be announcedin June 2005, will include an exceptional charge in respect to the loss ondisposal of Toilet Hire UK of £0.6 million relating to fees and asset writeoffs. Commenting on the transactions, John Brown, Chief Executive said: "It makes sense for Speedy Hire to switch out of low return sectors andconcentrate on our core businesses in tool and equipment hire. The acquisitionof D.A.D. allows us to further extend Speedy Hire's geographic coverage in anarea previously identified for greenfield expansion". -ends- www.speedyhire.plc.uk Speedy Hire Plc gcg hudson sandlerJohn Brown (Chief Executive) Nick Lyon / James BenjaminNeil O'Brien (Group Finance Director) Tel: 020 7796 4133Tel: 01942 720 000 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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