1st Jul 2005 13:16
Speedy Hire PLC01 July 2005 1 July 2005 Speedy Hire Plc ("Speedy Hire") Acquisition of MJ Gleeson Group plc's Internal Plant Hire Operations and Establishment of an Exclusive Five Year Supply Contract Speedy Hire announces the acquisition of the internal plant hire operations ofMJ Gleeson Group plc ("MJG"), a diverse construction business. The purchaseconsideration is £8.20 million in cash. MJG has also entered into a five year exclusive supply agreement with SpeedyHire to provide hire services to all MJG Group Companies, expected to be around£6.0 million per annum. Speedy Hire will provide a dedicated hire desk tomanage the hire requirements and significantly reduce administration for MJG.The agreement includes minimum levels of revenue and is consistent with SpeedyHire's strategy of providing value added services. MJG is currently in advancednegotiations with a management buy-out team regarding the sale of its BuildingDivision. In the event that this sale is concluded, the supply agreement isexpected to continue with the new owners of the Building Division. The acquisition will substantially increase MJG's business with Speedy Hireacross all Speedy Companies. This acquisition, the second in the currentfinancial year, creates a presence for Speedy Space and Speedy Power in SouthYorkshire and will enhance the Speedy Tool Hire and Speedy Lifting operations inthe region. Steve Corcoran, Chief Executive said: "Establishing an exclusive hire supply and dedicated hire desk for Gleeson willforge closer links between Speedy and a valued customer, and will enable Gleesonto benefit from improved management information and significantly reduceadministration processes. I am also delighted to welcome the transferringGleeson employees to Speedy." www.speedyhire.plc.uk -ends- Speedy Hire Plc Hudson SandlerSteve Corcoran, Chief Executive Nick Lyon/James BenjaminNeil O'Brien, Group Finance Director Tel: 020 7796 4133Tel: 01942 720 000 Note to editors: Speedy Hire is a leading provider of tool and equipment hire services to UKcontractors and builders, industry, utilities and the public sector, operatingfrom over 300 depots throughout the country. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Speedy HireMJGleeson