2nd Feb 2006 07:01
Speedy Hire PLC02 February 2006 2 February 2006 Speedy Hire Plc ("Speedy Hire") Acquisitions of accommodation hire and survey equipment hire operations Speedy Hire announces the acquisition of the Caledonian Safemaker hire business. Caledonian Safemaker hires temporary accommodation to customers inconstruction and industry from 5 UK depots and has a rental fleet ofapproximately 4,700 units. Total consideration will be £13.7 million to acquire the shares and settleoutstanding debt. In the year ended 31 March 2005, Caledonian Safemakergenerated an EBIT of £1.5 million and an EBITDA of £2.6 million from grossassets of approximately £12.5 million. Until recently, Caledonian Safemaker wasa trading division of Caledonian Building Systems Limited, which hived out thebusiness and assets of Caledonian Safemaker into a newly formed company prior tothe acquisition. Following the acquisition, the Caledonian Safemaker depots will be incorporatedinto Speedy Hire's existing accommodation hire business, Speedy Space Ltd,increasing the geographical coverage of the network and enhancing access to keygeographical regions. Speedy Hire also announces that it has strengthened its association with Mowlemplc ("Mowlem") through the acquisition of their accommodation hire and surveyequipment hire assets for a cash consideration of £5.1 million. Theaccommodation hire fleet comprises approximately 1,000 units. Following completion of the transaction Speedy Hire has entered into a five yearexclusive supply agreement to provide the hire of temporary accommodation and athree year exclusive supply agreement to provide the hire of survey equipment toMowlem. The existing trading agreement (consisting of other Speedy Hire products) whichwas due to expire on 31 December 2006 has also been extended to 31 December2008. Steve Corcoran, Chief Executive said: "We are very pleased to have acquired two well invested and maintainedaccommodation fleets which will further enhance our ability to provide a highquality service to our customers. Both the Mowlem and Caledonian Safemaker hireoperations will integrate easily into our existing Speedy Space business. "The acquisition of the Mowlem accommodation and survey assets accompanied withthe extension of the existing trading agreement clearly displays the strength ofthe relationship that exists with Mowlem and is part of the continuing processof generating supply chain efficiencies between the companies. I am delightedthat the relationships built over the past few years will not only continue butwill now develop even further. "I am also pleased to welcome those employees who are joining Speedy as a resultof the acquisitions." -ends- www.speedyhire.plc.uk Speedy Hire Plc Hudson SandlerSteve Corcoran, Chief Executive Nick LyonNeil O'Brien, Group Finance Director James BenjaminTel: 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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